California appeals court limits legal fees in restaurant catering dispute
A restaurant's attempt to recover tens of thousands in extra costs was rejected after a jury awarded it $60,391.
A California appeals court has upheld a decision to award a restaurant only $1,950 in additional legal fees following a dispute over catering services provided during the Masters golf tournament. According to The Times of India, the ruling in Hanna Carroll Restaurant Group LLC v. Hagestad came after the restaurant sought much higher amounts for legal and court reporting costs.
The dispute began when the restaurant provided meals for the family and friends of a golfer in Augusta, Georgia. While a menu was approved by the family, the two parties did not sign a written contract or discuss a specific price. The restaurant later sent a bill for $74,960, which the client, John Hagestad, challenged.
A jury previously found in favour of the restaurant and awarded it $60,391. Following this, the restaurant sought $81,875 in attorney fees and $25,741.20 in court reporter costs, arguing that Hagestad had unreasonably refused to admit the existence of a catering agreement.
The California Court of Appeal, Fourth Appellate District, Division Three, found that the restaurant had not properly identified which legal expenses specifically related to proving the existence of the contract. The court noted that proving the contract required relatively little effort compared to the main trial issue of service value.
The judges also rejected the claim for $25,741.20 in court reporter costs because the restaurant failed to provide sufficient evidence or underlying invoices for the expenses. The court directed each side to bear its own costs of the appeal.