Opinion ID: 8433
Heading Depth: 2
Heading Rank: 1

Heading: The California State Action

Text: 2 Fry sued PSC and PSCW in California state court seeking money damages for steel products sold by Fry to Sharp Steel, claiming that Appellants had guaranteed Sharp Steel's obligations. A year and a half after filing the California suit, Cadwalader began to represent Fry. A lengthy and contentious period of discovery followed. Eventually, Fry dismissed its suit voluntarily without prejudice pursuant to California law. 3 Shortly after the dismissal, Appellants instituted proceedings against Fry and Cadwalader in the California Superior Court under section 128.5 of the California Code of Civil Procedure, which provides sanctions for bad-faith litigation. Appellants sought a monetary award, including attorneys' fees, on the grounds that the lawsuit, actions and tactics ... were frivolous, harassing, and conducted in bad faith. After hearing oral argument, the Superior Court ruled in favor of Fry and Cadwalader on these issues and denied the section 128.5 motion. PSC and PSCW did not appeal this decision.