Wohlgemuth v. Caterpillar Inc

In Wohlgemuth v. Caterpillar Inc. (2012) 207 Cal.App.4th 1252, the Court of Appeal affirmed an award of attorney fees and costs to a buyer who dismissed his action following his acceptance of the manufacturer's section 998 offer. For purposes of the Song-Beverly Act, Wohlgemuth held that the term "judgment" in Civil Code section 1794, subdivision (d), could include any final determination of the rights of the parties in an action or proceeding, including a compromise agreement calling for a payment by a vehicle manufacturer and dismissal of the lemon law action by the buyer. (Wohlgemuth, supra, 207 Cal.App.4th at p. 1260.) "Thus, where a dismissal with prejudice is entered as part of a compromise agreement under Code of Civil Procedure section 998, it is the equivalent of a judgment for purposes of Civil Code section 1794(d)." (Id. at p. 1261.)