Aviles v. Shenon
CourtCalifornia Court of Appeal
Date FiledNovember 2, 2026
DocketB342634
StatusPublished
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Full Opinion
Filed 11/2/26
CERTIFIED FOR PARTIAL PUBLICATION *
IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
SECOND APPELLATE DISTRICT
DIVISION ONE
LEE AVILES, B342634, B344966
Plaintiff and Appellant, (Los Angeles County
Super. Ct. No. 23STCV08686)
v.
NATELA SHENON et al.,
Defendants and Appellants.
APPEALS from a judgment and orders of the Superior
Court of Los Angeles County, Barbara Ann Meiers, Judge.
Affirmed as to the judgment. Reversed with directions as to the
orders.
Stone & Sallus, Jason M. Stone and Elliott Montgomery for
Plaintiff and Appellant Lee Aviles.
* Pursuant to California Rules of Court, rules 976(b) and
976.1, this opinion is certified for partial publication with the
exception of parts A through E of the Facts and Procedural
Background and part A of the Discussion.
Grant │ Shenon │ Almaraz, David M. Almaraz and Thomas
Dreblow for Defendants and Appellants Natela Shenon and Yury
Shenon.
____________________________
Yury and Natela Shenon (the Shenons) leased a residential
property to Lee Aviles for approximately two years. At the
conclusion of the tenancy, the Shenons neither returned Aviles’s
security deposit, nor provided him an accounting of how they had
used the funds. A jury found the Shenons had thereby violated
Civil Code section 1950.5, 1 which governs a landlord’s handling
of security deposits under residential leases, and awarded
compensatory damages. The jury further found the Shenons
had acted in bad faith, entitling Aviles to statutory penalties as
well. The Shenons appeal from the resulting judgment. They argue
the court, not the jury, should have decided the issue of bad faith,
and that the evidence supports neither the bad faith finding, nor
the amount of compensatory damages awarded. We disagree and
affirm the judgment.
Aviles challenges two postjudgment orders: one limiting
his recovery of costs to $1,000, the other denying his request
for attorney fees. The court based both orders on a provision in
the lease that permits a party prevailing in litigation to recover
a maximum combined total of $1,000 in costs and attorney fees
(the fees and costs provision). Aviles argues this provision is
unconscionable and thus unenforceable. He also argues it is void
under section 1953, because it limits procedural rights he would
1 Unless otherwise indicated, all further statutory
references are to the Civil Code.
2
otherwise enjoy in litigation regarding a residential lease. (See
§ 1953, subd. (a) & (a)(4) [deeming “void as contrary to public
policy” any residential lease provision “by which the lessee agrees to
modify or waive” “[h]is procedural rights in litigation in any action
involving his rights and obligations as a tenant”].) In the published
portion of our opinion, we agree with Aviles that the Code of Civil
Procedure section 1032, subdivision (b) right to prevailing party
costs is procedural. Accordingly, the fees and costs provision is void
as it applies to costs. But Aviles identifies no right—procedural
or otherwise—to collect attorney fees, other than the very lease
provision he contends is unenforceable and void. Accordingly, as to
attorney fees, the provision creates a right—rather than abridging
or waiving a right—and does not violate section 1953. For similar
reasons, we need not consider Aviles’s argument that the fees and
costs provision is unconscionable. Striking that provision would not
afford Aviles any relief from the order denying him attorney fees,
because it would leave him without any basis for recovering such
fees.
Accordingly, we reverse the court’s order limiting Aviles’s
recovery of costs to $1,000. If the costs the trial court awards are
less than $1,000, the court may consider attorney fees, provided
that the combined total of costs and attorney fees may not exceed
$1,000.
FACTUAL AND PROCEDURAL BACKGROUND
A. The Lease and Aviles’s Tenancy
Aviles entered into a one-year agreement with Natela2
to lease a home the Shenons own in Los Angeles (the property)
2 To avoid confusion, we refer to Natela Shenon and Yury
Shenon by their first names. No disrespect is thereby intended.
3
for $9,750 per month (the lease). The lease required Aviles to pay
a security deposit of $19,500.00. It included an option to extend
the lease term for a second year at an increased rent of $10,043
per month. Aviles exercised this option. In November 2022,
he allowed the lease, as extended, to terminate, and moved out.
The parties do not dispute that the Shenons never returned
Aviles’s security deposit.
B. Aviles’s Complaint and the Shenons’
Cross-Complaint
In April 2023, Aviles filed a complaint against the Shenons
alleging they intentionally and wrongfully retained his security
deposit, thereby violating section 1950.5 and breaching the lease
agreement.
Section 1950.5 places numerous restrictions and
requirements on a landlord’s handling of a security deposit
made under a residential lease (see § 1950.5, subds. (c)-(i)),
and provides the tenant a cause of action if the landlord fails
to comply (id., subd. (o)). It permits a landlord to “claim . . . the
security . . . only those amounts as are reasonably necessary” for
certain enumerated purposes (§ 1950.5, subd. (e)(1)), including
“[t]he repair of damages to the premises, exclusive of ordinary
wear and tear, caused by the tenant or by a guest or licensee of
the tenant.” (§ 1950.5, subd. (b)(2); see also id., subd. (e)(2)(A)
[“[t]he landlord shall not assert a claim against the tenant or the
security for damages to the premises or any defective conditions
that preexisted the tenancy . . . or for the cumulative effects
of ordinary wear and tear occurring during any one or more
tenancies”].)
“No later than 21 calendar days after the tenant has
vacated the premises, . . . the landlord [must] furnish the
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tenant . . . a copy of an itemized statement indicating the basis
for, and the amount of, any security received and the disposition
of the security, and shall return any remaining portion of the
security to the tenant.” (§ 1950.5, subd. (h)(1).) “[I]f the landlord,
in bad faith, fails to comply with this subdivision [(h)(1) requiring
return of and/or documentation for deductions from the security
deposit],” “[t]he landlord shall not be entitled to claim any
amount of the security.” (§ 1950.5, subd. (h)(7).) “The bad
faith claim or retention by a landlord . . . of the security or any
portion thereof in violation of [section 1950.5]. . . may subject
the landlord . . . to statutory damages of up to twice the amount
of the security, in addition to actual damages.” (§ 1950.5,
subd. (m).)
The Shenons filed a cross-complaint alleging Aviles had
breached the lease and caused damage to the property exceeding
what the security deposit could compensate them for.
C. Key Evidence at Trial
The matter proceeded to a week-long jury trial. The
primary issues at trial were (1) the existence and extent
of damage the Shenons claimed justified their withholding
Aviles’s security deposit—primarily damage to the walls, kitchen
cabinets, and pool coping—and (2) whether this damage predated
Aviles’s tenancy and/or constituted normal wear and tear.
1. Aviles’s Testimony
Aviles testified, inter alia, to the following:
Aviles inspected the property with his real estate agent
before moving in. After the inspection, Aviles exchanged emails
with the Shenons’ real estate agent, in which Aviles identified
items in need of repair. Neither during the inspection, nor in
5
these emails did Aviles mention the damage the Shenons would
later cite as the basis for retaining his security deposit. Aviles
did not complete a move-in inspection form documenting the
condition of the property at the outset of his tenancy, as the lease
requires.
Aviles regularly communicated with Yury regarding the
property. For example, Aviles reported to Yury that a fire alarm
on the property would not stop beeping. At Yury’s suggestion,
Aviles changed the battery, but the beeping continued, and Aviles
removed the alarm from the wall. Aviles reported various other
issues to Yury as well, but never complained about most of the
issues the Shenons would later cite as the basis for retaining his
security deposit.
Aviles noticed damage throughout the property that he did
not report to Shenon for various reasons. He noticed that a brick
around the pool was “previously cracked, and it chipped or fell
in” but did not complain about it, because he “never used the
pool.” The front doorknob and lock “used to always give [them]
problems,” only some of which he reported to the Shenons, and
the front door had scuff marks on it. Aviles also noticed damage
to the window shades when he moved in and problems with the
kitchen pantry.
Before moving out of the property, Aviles patched up
holes in the wall where he had mounted his television. He hired
movers and agreed they could have several pieces of furniture
Aviles would otherwise have thrown away. Many months later—
after the filing of the instant lawsuit—Aviles learned that the
movers had left one of these items, a large entertainment center,
at the property.
6
Yury invited Aviles to participate in a final inspection
of the property, but Aviles was out of town. On November 29,
2022, Yury informed Aviles via text that, during the inspection,
Yury had “identified many areas of the damage throughout the
house. I’m working to get quotes for the repairs and will get
back to you on the estimate and how it affects your deposit.”
Yury and Aviles spoke on the phone at some point in early
December, but Yury still did not identify any specific types of
damage or provide estimates for repairs. On December 17, 2022
and January 19, 2023, Yury texted Aviles stating that Yury was
still waiting for the repair estimates. He provided no further
details.
As of March 9, 2023, the Shenons had neither returned any
portion of Aviles’s security deposit, nor identified the nature of
the damage based on which they were withholding the deposit.
Aviles’s attorney wrote to the Shenons formally demanding
return of the deposit. Yury emailed Aviles’s counsel the next
day with the following list of the damages to the property:
“1. Various cabinets/sliders in the kitchen damaged [¶]
2. Cabinet damaged in living room entertainment cabinet area
[¶] 3. Sliding closet door in downstairs guest bedroom damaged
[¶] 4. Walls damaged throughout the house [¶] 5. Unreasonable
number of holes added to walls throughout the house [¶]
6. Pool brick coping broken [¶] 7. Front door damage/front door
handle damage [¶] 8. Front entry [fire] alarm panel removed
[¶] 9. Multiple window shades are damaged and stained
[¶] 10. Renter left various items in the house that need to be
professionally removed[.] [¶] Moreover, [Aviles] attempted
to ‘patch’ holes throughout the house, but due to the poor
workmanship of this, remediation had to be completed.” The
7
email states that the security deposit funds had been insufficient
to pay for repairing these damages, but does not attach any
documentation of the repairs or cost.
2. Yury Testimony
Yury testified to the damage outlined in his March 10, 2023
email, his efforts to commission repair work, and the cost of that
work. According to Yury, none of this damage existed at the time
Aviles moved in. Throughout Aviles’s tenancy, Aviles regularly
contacted Yury when he had a problem with the property, but
Aviles never complained about any of the damage for which the
Shenons withheld the security deposit.
On cross-examination, Yury testified that he had not
withheld any portion of the prior tenants’ security deposit.
Rather, to “help them out,” he had permitted those tenants—a
“really nice family,” the father of which lost his job during the
tenancy—to use their security deposit for the last two months’
rent. Yury had the property repainted after the previous tenants
vacated and before Aviles moved in. Yury had personally taken
“staging” photographs of the property as it looked just before
Aviles moved in. He also took photographs of the property after
Aviles moved out to document the damage he found. He did not
send these to Aviles at any point before the lawsuit began.
3. Additional Testimony
Gregory Shenon, Yury’s brother, represented the Shenons
in leasing the property to Aviles. Gregory testified that he
showed the property to Aviles in late 2020, and that Aviles was
also represented by a real estate agent. According to Gregory,
when he showed Aviles the property, it was empty and in “good
condition” with “[n]o gouges or marks on the walls.”
8
Stefan Morales, a painter who repaired and repainted
the property after Aviles moved out, testified to the presence of
“gashes” and “black marks” on nearly every hallway and ceiling
throughout the property after Aviles moved out. He testified
that the front door and kitchen cabinets were also significantly
damaged.
4. Documentary Evidence
The exhibits at trial included the photographs Yury took
of the property for marketing purposes around the time Aviles
moved in, as well as photographs Yury took of the property to
document the damage after Aviles moved out. Aviles presented
side-by-side comparisons of these “staging photos” and “damage
photos” to the jury.
The Shenons provided several estimates for repair
work, namely: a $12,800.00 estimate, dated March 12, 2023, to
“refinish” the kitchen cabinets, island, and bar top; an $8,2000
invoice from Morales, dated December 20, 2022, for “repairs
to the cracks in the ceiling and the holes in the walls and in
addition to [preparing and] paint[ing]” the interior of the home;
and a $2,850.00 estimate, dated May 3, 2023, to repair the
damaged pool coping tiles.
D. Jury Instructions and Verdict
The court provided the jury several special instructions.
It instructed that the Shenons could only reasonably withhold
security deposit funds for damage beyond normal “wear and
tear,” which it defined as “that deterioration [which] occur[s] by
reason of time and use despite ordinary care for its preservation.”
The instruction explained damage is attributable to “ordinary
wear and tear” if the evidence “is susceptible of the inference
9
that some of the damage was not attributable at all to the
[the tenant] . . . and other damage was attributable to the
usual practice and custom of [the tenant] in carrying out [his]
business.”
For the purposes of assessing Aviles’s claim that the
Shenons had acted in bad faith when they withheld his security
deposit, the court instructed the jury that “bad faith” “generally
impl[ies] or involv[es] a design to mislead another or a neglect
or refusal to fulfill some duty or some contractual obligation
not prompted by an honest mistake[,] but by some interested
or sinister motive[,] [n]ot simply bad judgment or negligence
but, rather, the conscious doing of a wrong because of a dishonest
purpose.”
The jury entered a verdict in Aviles’s favor on his claims
and the Shenons’ cross-claims. In a special verdict form, the jury
found (1) the Shenons violated section 1950.5 and thereby also
breached the lease; (2) the Shenons acted in bad faith; (3) this
violation and breach damaged Aviles in the amount of $19,500;
and (4) Aviles did not breach the lease agreement.
E. Court’s Assessment of Statutory Penalties
Because the jury found bad faith, the court invited
the parties to offer argument on whether and in what amount
the court should impose the statutory penalty section 1950.5
authorizes in addition to compensatory damages. (See § 1950.5,
subd. (m).)
The Shenons’ counsel argued not only that bad faith
penalties were unwarranted in any amount, but that the court,
not the jury, should have decided whether the Shenons acted
in bad faith under section 1950.5. The court noted in response:
“Had it been up to me to render a decision about bad faith it
10
would have been the same as what the jury came in with.” The
court elaborated on the basis for this view, which included that
Yury was not credible: “I believe, frankly, that [Yury] was not
honest with the court in saying that he had repainted this whole
place. [¶] . . . [¶] Yes, there were little nicks in the kitchen,
but I’m not persuaded any more than the jury was, that [Aviles]
put those nicks there. . . . I think . . . [an] informed, reasonable,
common-sense conclusion, is that [Yury] would probably not
[be] going over the house with a fine-tooth comb when the prior
tenants left because he wasn’t looking to get payment from them
out of their security deposit. So those nicks in the kitchen may
well have previously existed. [¶] . . . [¶] All these things are
possible, but my view is that there was bad faith here, . . . and
that [the Shenons] should pay double the amount of the security
deposit.” The court then imposed a statutory penalty of $39,000.
F. Judgment and Postjudgment Orders on
Costs and Fees
The court entered judgment in Aviles’s favor for a total of
$61,801.67—comprised of the $39,000 statutory penalty and the
$22,801.67 in compensatory damages the jury awarded ($19,500
with interest)—plus costs and attorney fees in an amount to be
determined.
The California Association of Realtors form the Shenons
used to draft the lease includes the fees and costs provision:
“In any action or proceeding arising out of this agreement, the
prevailing party between landlord and tenant shall be entitled
to reasonable attorney fees and costs, collectively not to exceed
$1,000 (or $ _________).” (Capitalization omitted.) Nothing is
written in the blank space provided for an alternative amount.
11
On September 26, 2024, Aviles filed a memorandum
seeking $24,773.27 in litigation costs that did not include
attorney fees. The Shenons moved to tax costs. The court
granted the motion, citing the contractual fees and costs
provision.
Three days later, Aviles filed a formal motion for attorney
fees in the amount of $136,896.50. Aviles supported his motion
with an attorney declaration and billing records. Aviles argued
the contractual fees and costs provision was unconscionable, and
that enforcing it would be inequitable. The Shenons opposed
the motion, on the bases that the fees and costs provision was
enforceable, and that the fees Aviles requested were “excessive,”
justifying denial of any fees award. The court denied the motion
“on the basis that [the fees and costs provision] was and is valid
and the $1,000 has already been granted as a part of a cost award
to [Aviles].”
In case No. B342634, the Shenons appealed from the
judgment, and Aviles cross-appealed from the order granting
the Shenons’ motion to tax costs. In case No. B344966, Aviles
appealed the postjudgment order denying his motion for attorney
fees.
We consolidated the appeals for all purposes.
DISCUSSION
A. The Shenons’ Appeal from the Judgment
On appeal, the Shenons do not challenge the jury’s finding
that they violated section 1950.5. Rather, they argue: (1) the
court, not the jury, should have decided whether the Shenons
acted in bad faith; (2) the evidence does not support a finding
12
of bad faith; and (3) the evidence does not support awarding
the full security deposit amount as compensatory damages.
1. No Reversible Error in Permitting the
Jury To Determine Bad Faith
According to the Shenons, section 1950.5 requires the court,
not the jury, to determine whether a landlord acted in bad faith.
They point to the language of the statute stating that “[t]he court
may award damages for bad faith whenever the facts warrant
that award.” (§ 1950.5, subd. (m), italics added.) They also note
the Legislature permitted bad faith-based penalties “regardless of
whether the injured party has specifically requested [such] relief”
(ibid.), implying a court may find bad faith even if the issue was
not submitted to the jury as part of the tenant’s claim.
Assuming—without deciding—the court erred in
permitting the jury to decide whether the Shenons acted in bad
faith, such error did not prejudice them. The court expressly
stated it would have found bad faith, had it been tasked with
deciding the issue. The court went on to explain its reasoning,
which did not depend on any jury findings.
In arguing this postverdict commentary by the court does
not prevent the relief they seek, the Shenons cite cases for the
proposition that court commentary is not evidence and “may
never be used to impeach the [court’s] final order.” (Jespersen
v. Zubiate-Beauchamp (2003) 114 Cal.App.4th 624, 633; see
In re Marriage of Ditto (1988) 206 Cal.App.3d 643, 646–647;
Beck Development Co. v. Southern Pacific Transportation
Co. (1996) 44 Cal.App.4th 1160, 1204.) Our reliance on the
court’s statements in assessing prejudice does neither. The
court made an independent finding of bad faith after the jury
verdict. The Shenons thus have not identified reversible error.
13
2. Substantial Evidence Supports a Finding
of Bad Faith
The Shenons argue the evidence does not support that they
acted in bad faith. We review such challenges under the highly
deferential substantial evidence standard. (See Leung v. Verdugo
Hills Hospital (2012) 55 Cal.4th 291, 308 (Leung).) The Shenons
contend that “[o]n balance, the substantial evidence presented at
trial weighs against a finding of bad faith,” pointing to evidence
they argue is inconsistent with that finding. (Boldface omitted &
italics added.)
That is not the standard. In reviewing for substantial
evidence, “[a]ll of the evidence most favorable to the respondent
must be accepted as true, and that [evidence] unfavorable
[to the respondent] discarded as not having sufficient verity
to be accepted by the trier of fact.” (Estate of Teel (1944)
25 Cal.2d 520, 527; accord, People v. Superior Court (Jones)
(1998) 18 Cal.4th 667, 681 [reviewing court must affirm factual
finding where “ ‘there is substantial evidence, contradicted
or uncontradicted, which will support [the finding]’ ”].) Thus,
we accept as true the evidence in the record supporting that
the damage for which the Shenons withheld Aviles’s security
deposit predated his tenancy—for example, Aviles’s testimony
and the staging photographs—and disregard, for example,
Yury’s testimony to the contrary. (See Leung, supra, 55 Cal.4th
at p. 308 [substantial evidence review requires “resolv[ing] all
conflicts in the evidence in favor of the prevailing party”].)
Viewed in this way, the evidence further supports the
“reasonable inference” that the Shenons, as the individuals
who inspected the property before Aviles moved in and took
the staging photographs, knew this damage predated Aviles’s
14
tenancy and nevertheless refused to refund Aviles his security
deposit. (See Leung, supra, 55 Cal.4th at p. 308 [we must “draw
[from the evidence] all reasonable inferences in support of the
trial court’s judgment”].) This constitutes substantial evidence
of a “refusal to fulfill some duty or some contractual obligation,
not prompted by an honest mistake . . . but by some interested
or sinister motive.” (Pugh v. See’s Candies, Inc. (1988) 203
Cal.App.3d 743, 764 [defining bad faith].)
3. The Shenons’ Bad Faith Prevents Them
from Claiming a Set-Off
Finally, the Shenons argue Aviles admitted he caused
some damage to the property, 3 and that they thus should
be permitted to deduct the cost of repairing that damage
from any compensatory award to Aviles. But section 1950.5,
subdivision (h)(7) provides that “[a] landlord shall not be entitled
to claim any amount of the security if the landlord, in bad faith,
fails to comply with this subdivision.” Under this section, the
finding that the Shenons acted in bad faith precludes them from
claiming a setoff.
The Shenons cite Granberry v. Islay Investments (1995)
9 Cal.4th 738 (Granberry) and argue that a landlord’s failure to
comply with some aspects of section 1950.5 “does not lead to the
3 Specifically, they argue Aviles admitted to “ripping smoke
detectors/fire alarms from the walls and ceilings of the property
in violation of the lease[,] [¶] . . . using ‘screws, fastening devices,
large nails, [or] adhesive materials’ without permission [¶] . . .
leaving personal items behind at the property upon termination
of the lease that needed to be professionally moved[, and] [¶] . . .
fail[ing] to return the required move in inspection form.”
(Capitalization omitted.)
15
conclusion that he has lost all right to claim damages for unpaid
rent, repair, and cleaning, whether through setoff or otherwise.”
(Granberry, supra, at p. 745.) But Granberry explicitly limits
its holding to cases involving landlords acting in good faith:
“[W]e conclude that a landlord who has failed in good faith to
take advantage of the summary nonjudicial deduct-and-retain
procedure allowed under section 1950.5, subdivision (f), may
recover damages for unpaid rent, repairs and cleaning (§ 1950.5,
subd. (e)) in a subsequent judicial proceeding provided that he
proves by a preponderance of the evidence that he has suffered
such damages and that the amount claimed is reasonable.”
(Granberry, supra, at pp. 749–750, italics added; see id. at p. 750,
fn. 6 [“[b]ecause the jury did not find that defendants here acted
in bad faith, we do not consider and therefore express no opinion
regarding the rights of landlords who have acted in bad faith”].)
Consistent with this, the court’s reasoning in Granberry focuses
on a desire not to penalize landlords who act in good faith. (See
id. at p. 749.)
Having acted in bad faith, the Shenons may claim no
portion of the security deposit.
B. Aviles’s Appeals from the Order Awarding
Limited Costs and the Order Denying Attorney
Fees
Aviles argues the contractual fees and costs provision,
based on which the court granted the Shenons’ motion to tax
costs and denied Aviles’s motion for attorney fees, is void under
section 1953, as well as unconscionable and thus unenforceable.
On these bases, he argues the court erred in limiting his cost
award and denying his fees motion. We conclude section 1953
16
voids the fees and costs provision as applied to costs, but that
the provision as applied to attorney fees is enforceable.
1. Section 1953
Section 1953 deems “void as contrary to public policy”
(id., subd. (a)) “[a]ny provision of a lease or rental agreement
of a dwelling by which the lessee agrees to modify or waive”
(id., subd. (a)) certain enumerated rights, including “procedural
rights in litigation in any action involving [the lessee’s] rights
and obligations as a tenant” (id., subd. (a)(4)). Aviles argues
his recovery of costs and reasonable attorney fees is such a
“procedural right[ ] in litigation” (§ 1953, subd. (a)(4)), rendering
the contractual fees and costs provision’s restrictions thereon
void. To support this characterization, Aviles cites Code of Civil
Procedure section 1032, subdivision (b)’s requirement that “a
prevailing party is entitled as a matter of right to recover costs
in any action or proceeding.”
a. Right to prevailing party attorney fees
“The costs allowed under [Code of Civil Procedure]
section 1032 do not include the attorney fees which the prevailing
party has incurred in the litigation.” (Westamerica Bank v.
MBG Industries, Inc. (2007) 158 Cal.App.4th 109, 126.) Rather,
costs awardable under Code of Civil Procedure section 1032,
subdivision (b) include attorney fees only if and to the extent
a fees award is separately “authorized by contract, statute,
or law.” (Westamerica Bank, supra, at p. 126; see Code Civ.
Proc., § 1033.5, subds. (a)(10)(A)–(C) & (c)(5).) This is consistent
with the default rule in California that “each party to a lawsuit
must ordinarily pay his own attorney fees.” (Trope v. Katz
(1995) 11 Cal.4th 274, 278; see Code Civ. Proc., § 1021 [“[e]xcept
17
as attorney’s fees are specifically provided for by statute, the
measure and mode of compensation of attorneys and counselors
at law is left to the agreement, express or implied, of the
parties”].) No statute or other law provides for the recovery
of attorney fees here. Although other statutes protecting the
rights of tenants provide for attorney fees, section 1950.5 does
not. (Compare § 1950.5 [not referencing attorney fees] with,
e.g., § 1942.5, subd. (i) [entitling prevailing party in retaliatory
eviction proceeding to attorney fees upon request]; § 1947.11,
subd. (a) [entitling prevailing party in litigation regarding rent
control violations to attorney fees].) And the only contractual
right to prevailing party attorney fees Aviles identifies is
the contractual fees and costs provision. Thus, that provision
does not improperly limit any right, procedural or otherwise,
to recover prevailing party attorney fees—it creates a limited
right to recover such fees up to a certain amount.
b. Right to prevailing party costs
To determine whether section 1953 voids a tenant’s
waiver or agreement to limit costs otherwise available pursuant
to Code of Civil Procedure section 1032, subdivision (b) 4 we
4 Whether “section 1953 void[s] an agreement by a lessee
to waive or modify the right to recover” Code of Civil Procedure
section 1032, subdivision (b) prevailing party costs is an issue
currently before the California Supreme Court. (See Gogal v.
Deng, S292779, Supreme Ct. Mins., Nov. 19, 2025, p. 1728;
Gogal v. Deng (2025) 112 Cal.App.5th 1193 (Gogal), review
granted Nov. 19, 2025, S292779 [order on appeal awarded
litigation costs only, after the plaintiff had separately
obtained an award of attorney fees].) Although the Court of
Appeal decision under review in that case does not address
18
look to whether that right is “procedural.” The parties have
not provided, nor has our own research revealed, authority
addressing the nature of the prevailing party costs right under
Code of Civil Procedure section 1032, subdivision (b). It is
significant that the Legislature chose to include the right in a
code governing procedure, but that alone does not resolve the
issue. We therefore look to courts’ characterization of the right
to recover costs in other contexts.
In the context of determining whether a federal rule
improperly modifies or abridges a substantive right, the United
State Supreme Court considers “not whether the rule affects a
litigant’s substantive rights; most procedural rules do. [Citation.]
What matters is what the rule itself regulates: If it governs
only ‘the manner and the means’ by which the litigants’ rights
are ‘enforced,’ it is valid [i.e., procedural]; if it alters ‘the rules
of decision by which [the] court will adjudicate [those] rights,’
it is not [i.e., it is substantive].” (Shady Grove Orthopedic
Associates, P.A. v. Allstate Ins. Co. (2010) 559 U.S. 393, 407.)
This reasoning weighs in favor of concluding Code of Civil
Procedure section 1032, subdivision (b) creates a procedural,
rather than a substantive right. Awarding prevailing party costs
does not alter “ ‘the rules of decision by which [the] court will
adjudicate’ ” any cause of action—rather, it allows a prevailing
plaintiff to enforce his rights by, inter alia, collecting costs.
(Shady Grove, supra, 559 U.S. at p. 407.)
section 1953, the Supreme Court instructed the parties to brief
the enforceability of a cost cap in light of both section 3513—the
section on which the Court of Appeal relied—and section 1953.
(Gogal v. Deng, S292779, Supreme Ct. Mins., Nov. 19, 2025,
p. 1728.)
19
Federal courts’ approach to prevailing party costs in
diversity jurisdiction cases likewise weighs in favor of concluding
Code of Civil Procedure section 1032, subdivision (b) creates a
procedural right. In such cases, federal courts generally view the
right to recover prevailing party costs as procedural in nature,
and thus governed by federal rather than state law. (See, e.g.,
Champion Produce, Inc. v. Ruby Robinson Co., Inc. (9th Cir.
2003) 342 F.3d 1016, 1022.) Federal courts have recognized
a right to recover prevailing party costs as substantive only
under exceptional circumstances when the state legislature has
“express[ly] indicat[ed]” a “ ‘special interest’ ” in including costs
as part of the recovery available via a particular cause of action.
(See, e.g., Clausen v. M/V New Carissa (9th Cir. 2003) 339 F.3d
1049, 1065.) For example, Code of Civil Procedure section 1174,
subdivision (d) permits a prevailing Song Beverly Act plaintiff
to recover certain costs and attorney fees. (See § 1794, subd. (d).)
Forouzan v. BMW of North America, LLC (C.D.Cal. 2019) 390
F.Supp.3d 1184 concluded this reflects the “special interest”
needed for Code of Civil Procedure section 1174, subdivision (d)
to grant a substantive right, and that the section therefore
governs costs in a Song Beverly Act lawsuit in federal court.
(Forouzan, supra, at pp. 1186–1188, citing Clausen, supra, at
p. 1065.) Code of Civil Procedure section 1032, subdivision (b),
by contrast, does not reflect any “special interest” in folding
costs into the recovery available via any particular cause
of action; it provides for prevailing party costs in all types of
actions. Nor does section 1950.5 express any “special interest”
in permitting tenant plaintiffs to recover costs if they prevail
against their landlords.
20
Considering all of the above, we conclude Code of Civil
Procedure section 1032, subdivision (b) reflects a procedural
right. Accordingly, section 1953 prohibits a tenant like Aviles
from limiting that right in a residential lease agreement. The
fees and costs provision is void to the extent it does so.
This conclusion is consistent with the Fourth District’s
discussion of the fees and costs provision in Gogal. The Gogal
decision noted that Code of Civil Procedure section 1032,
subdivision (b) “is a statute of general application to all civil
cases; it is not a tenant protection statute. . . . Absent express
language in a different statute that overrides the general
application of section 1032[, subdivision] (b)—and tenants point
to nothing in any tenant protection statute that would create
an express exception—we cannot adopt an interpretation of the
costs statute that would vary depending on the nature of the
underlying case.” (Gogal, supra, 112 Cal.App.5th at p. 1202.)
Section 1953 is the type of tenant protection statute the parties
had failed to identify in Gogal. We hold it interacts with Code
of Civil Procedure section 1032, subdivision (b) in precisely the
way Gogal intimated such a provision would.
2. Unconscionability
Aviles argues the contractual fees and costs provision is
also unconscionable, and that the court should have refused to
enforce it on this basis. (See § 1670.5, subd. (a) [court may refuse
to enforce a contract or clause it concludes was “unconscionable
at the time it was made”]; Armendariz v. Foundation Health
Psychcare Services, Inc. (2000) 24 Cal.4th 83, 114.) That
argument, however, necessarily and incorrectly assumes the
provision deprived Aviles of a right to attorney fees independent
of the lease. As discussed above, the only authority permitting
21
Aviles to recover attorney fees is the very contractual provision
he contends the court should have refused to enforce. Were
we to agree with Aviles that the court should have stricken
the provision, this would result in Aviles having no right to any
attorney fees at all. 5 We thus consider Aviles’s unconscionability
arguments no further.
5 At the hearing before this court, Aviles argued that we
should strike only the portion of the provision limiting attorney
fees recovery to $1,000 and permit the general allowance
for attorney fees to remain. This is inconsistent with well-
established principles governing severance of unconscionable
terms. (See Ramirez v. Charter Communications, Inc. (2024) 16
Cal.5th 478, 516; see, e.g., ibid. [“If the unconscionability cannot
be cured by extirpating or limiting the offending provisions,
but instead requires augmentation to cure the unconscionability,
then the court should refuse to enforce the contract. [Citation.]
Courts cannot ‘rewrite agreements and impose terms to which
neither party has agreed’ ”].)
22
DISPOSITION
In case No. B342634, the judgment is affirmed. The order
granting the Shenons’ motion to tax costs and limiting Aviles’s
recovery of costs to $1,000 is reversed, and the court shall
reconsider that motion in light of this opinion.
In case No. B344966, the order denying Aviles’s motion for
attorney fees is provisionally reversed. The court shall consider
the motion if the costs the court awards are less than $1,000, but
may not award attorney fees in an amount that would cause the
combined total of costs and attorney fees awarded to exceed $1,000.
The parties shall bear their own costs on appeal.
CERTIFIED FOR PARTIAL PUBLICATION.
ROTHSCHILD, P. J.
We concur:
WEINGART, J.
M. KIM, J.
23