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West Hills Farms, Inc. v. RCO AG Credit, Inc.

88 Cal. Rptr.3d 458 (2009)

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West Hills Farms, Inc. v. RCO AG Credit, Inc.

California Court of Appeal, Fifth District

88 Cal. Rptr.3d 458 (2009)

Facts

West Hills Farms, Inc. and California Pistachios, LLC (plaintiffs) were shareholders in RCO AG Credit, Inc. (RCO) (defendant). The plaintiffs brought suit claiming that RCO had paid unnecessary fees to a related corporation. Under California Corporations Code § 800, the trial court granted a RCO motion and required that the plaintiffs furnish a bond of $50,000 as security for RCO’s expenses related to the lawsuit. The trial court then found in favor of RCO on the merits. RCO filed a motion to recover all of its attorney’s fees and expenses related to the lawsuit, which amounted to $350,000. The trial court denied the motion and limited RCO’s recovery to the $50,000 bond amount. RCO appealed.

Rule of Law

Issue

Holding and Reasoning (Kane, J.)

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