Chinn v. KMR Property Management

In Chinn v. KMR Property Management (2008) 166 Cal.App.4th 175, the court concluded that "construing the term 'net monetary recovery' in context . . . the Legislature did not intend to include settlement proceeds received by the plaintiff in exchange for a dismissal in favor of the defendant." (Chinn, supra, 166 Cal.App.4th at p. 188.) In so holding, the Chinn court disagreed with dicta in On-Line Power, Inc. v. Mazur (2007), stating that under circumstances when a plaintiff claims prevailing party status based on a settlement payment pursuant to a Code of Civil Procedure section 998 offer, and a defendant claims to be a prevailing party based on a dismissal in its favor, the statute contemplated a fifth option in which the trial court could exercise its discretion to determine the prevailing party. (Chinn, supra, at pp. 189-190.)