The California Supreme Court has accepted review in Rossa v. D.L. Falk Construction, to review the issue of whether California Rules of Court, rule 8.278(d)(1)(F), which permits a successful appellant to recover "the cost to obtain a letter of credit as collateral," allows the recovery of interest paid on sums borrowed to fund a letter of credit used to secure a surety bond. The Court of Appeal denied the claim, finding no statutory basis for awarding such costs. In doing so, Rossa first distinguished Cooper v. Westbrook Torrey Hills (2000) 81 Cal.App.4th 1294, which allowed the recovery of interest incurred in making a cash deposit pending appeal. However, Rossa then went on to “question its holding,” referring to the “obvious faultline” in Cooper’s analysis, arguing that Cooper is “further undermined” by a lack of statutory support and that it “stands as a conspicuous exception to the principles that costs are awarded only if statutorily authorized, and that such statutes are strictly construed.” Presumably, the Supreme Court accepted review in Rossa with the intention of resolving this conflict between the First and Fourth Districts. For more procedural details about the review in Rossa, see the Appeals & Writs update page.
Home > Civil and Appellate Procedure > The California Supreme Court Accepts Review – Can an Appellant Recover as Costs on Appeal the Interest Paid on Sums Borrowed To Secure a Letter of Credit Used to Secure a Surety Bond?