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> Insights > Foley Mansfield Team Obtains Favorable Result on Appeal For Women’s Clothing Retailer

Foley Mansfield Team Obtains Favorable Result on Appeal For Women’s Clothing Retailer

July 2, 2025Verdicts

Foley Mansfield Partners Angela Sayre, Chair of the Real Estate practice group, and Margaret (“MJ”) Johnson, Chair of the Appellate practice group, teamed up for a second victory on appeal on behalf of Chico’s FAS, Inc. in a case dating back to 2020 involving a commercial lease.

In first appeal, Angela and MJ were successful in reversing a judgment based upon opposing counsel’s breach of ethical and statutory violations in obtaining it.  (Shapell SoCal Rental Properties, LLC v. Chico’s FAS, Inc. (2022) 85 Cal.App.5th 198.)  After remand and further proceedings, the trial court dismissed Shapell’s complaint against Chico’s. Chico’s then filed a memorandum of costs. Shapell also filed a memorandum of costs claiming that it was the prevailing party based upon a compromise settlement in another case against Chico’s. The trial court granted the parties’ cross-motions to tax  costs, finding this to be a unique situation where there is no prevailing party. Both sides appealed.

Earlier this month in Shapell SoCal Rental Properties, LLC v. Chico’s FAS, Inc., Fourth Civil G063663 (June 17, 2025), the California Court of Appeal, Fourth Appellate District, Division Three rejected Shapell’s arguments to the contrary and held that Chico’s is the prevailing party and entitled to recover costs as a matter of right under Code of Civil Procedure section 1032(a)(4) because it is a defendant in whose favor a dismissal was filed in this action.  Accordingly, the appellate court affirmed the trial court’s order granting Chico’s motion to tax costs and reversed the order granting Shapell’s motion.  

Angela and MJ were supported by Paralegal Yvette Margolis and Legal Administrative Assistants Elona Conchas and Chris Sanders.

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