Warren v. Shahar CA2/4

CourtCalifornia Court of Appeal
DecidedMarch 11, 2026
DocketB339274
StatusUnpublished

This text of Warren v. Shahar CA2/4 (Warren v. Shahar CA2/4) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Warren v. Shahar CA2/4, (Cal. Ct. App. 2026).

Opinion

Filed 3/11/26 Warren v. Shahar CA2/4 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS

California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION FOUR

SCOTT KENNETH WARREN, B339274

Defendant, Cross-complainant (Los Angeles County and Respondent, Super. Ct. No. 22STCV26316)

v. LAURI SHAHAR,

Cross-Defendant and Appellant.

APPEAL from an order of the Superior Court of Los Angeles County, Rolf Michael Treu, Judge. Reversed with instructions. KP Law, Zareh Jaltorossian for Cross-Defendant and Appellant. Wolfe & Wyman, Matthew C. Bures, Spencer J. Reckon for Defendant, Cross-complainant and Respondent. INTRODUCTION Martin Warren and Bessie Warren sued their adult sons, Scott Warren and Bruce Warren, over some family financial disagreements. Scott1 then cross-complained and included his sister, Lauri Shahar, as a cross-defendant. After a trial, Scott prevailed. The trial court entered a single judgment, which stated that Martin and Bessie take nothing on their complaint, and Scott could recover his costs against them; it also stated that Lauri was liable to Scott for $600,000 on the cross-complaint, and Scott could recover his costs against her. Scott then filed a single memorandum of costs that included all of his costs incurred—both in defending the complaint and in prosecuting the cross-complaint. Lauri, mistaking the memorandum of costs as pertaining only to Scott’s litigation against Martin and Bessie, did not move to strike or tax costs. Lauri paid the $600,000 judgment against her. Scott then attempted to recover his full amount of costs from Lauri: $175,195.47. This amount included $107,476.25 in expert witness fees under Code of Civil Procedure 998,2 based on a section 998 offer to compromise that Scott served only on Martin and Bessie. Lauri moved under section 473, subdivisions (b) and (d), to correct the trial court’s award of costs against her. Lauri argued that she could not be liable for costs Scott incurred in litigating against Martin and Bessie, including the expert witness fees. The trial court denied Lauri’s motion, and she appealed.

1 We follow the parties’ lead and refer to individuals by their first name to avoid confusion. 2 All undesignated section references are to the Code of Civil Procedure.

2 We reverse. The trial court acted in excess of its jurisdiction by awarding Scott costs against Lauri that were not incurred in litigation against Lauri and were not authorized by law. Because Lauri’s appeal challenges as void only the expert witness fees under section 998, we strike those fees from the judgment and remand for further proceedings. FACTUAL AND PROCEDURAL BACKGROUND A. Complaint, cross-complaint, and judgment Martin and Bessie have three adult children, Scott, Bruce, and Lauri, all of whom are attorneys. In August 2022, Martin and Bessie sued Scott and Bruce for financial elder abuse and other claims. The substance of the litigation is not relevant to this appeal, so we include only a very brief summary for context. Martin and Bessie alleged that they owned several real properties, and along with Scott and Bruce, they “worked together as a family and ran an informal family business for well over 25 years without dispute.” Eventually, however, the family had a falling out. Martin and Bessie alleged that after they had transferred most of their assets to the children, Scott and Bruce failed to provide the financial support they had promised, leaving Martin and Bessie without sufficient financial resources. Scott then cross-complained against Martin, Bessie, Lauri, and Lauri’s son, Toren Shahar.3 As relevant here, Scott alleged that Lauri reneged on a promise to pay Scott $600,000. Causes of action included anticipatory breach of contract and breach of

3 For the cross-complaint, Scott sued individually and as trustee of the Hard Habit Trust, of which Bruce is the beneficiary. The distinction between Scott individually and Scott as trustee is not relevant to the appeal.

3 fiduciary duty. Scott sought declaratory relief and other damages. The case went to a jury trial in July and August 2023. On Martin and Bessie’s claims, the jury returned a verdict in favor of Scott and Bruce. On Scott’s cross-complaint against Martin and Bessie, the jury found in favor of Scott for anticipatory breach, but found Scott’s damages to be $0. On Scott’s cross-claims against Lauri, the jury found in favor of Scott for anticipatory breach, and found Scott’s damages to be $600,000. The court entered a judgment on October 2, 2023.4 It stated that Martin and Bessie take nothing on their complaint against Scott and Bruce, and that “these said defendants recover their costs and disbursements in the amount of $____ against said plaintiffs.” The judgment further stated that Scott recover $600,000 from Lauri, plus interest, and that Scott “recover [his] costs and disbursements in the amount of $____ against said cross-defendant Lauri Shahar.” B. Post-judgment costs On October 11, 2023,5 Scott filed a memorandum of costs seeking $175,195.47 in total costs. The memorandum did not specify whether the costs arose from the action on the complaint or the cross-complaint, or if they were incurred in litigation against Martin and Bessie or against Lauri. The largest category of costs was $107,476.25 in expert witness fees for four witnesses;

4 This document is titled “Corrected Judgment on Jury Verdict”; it is the only judgment in the record on appeal. An earlier judgment was apparently entered on September 27, 2023. 5 Some documents in the appendixes on appeal do not have filing stamps; we therefore refer to the date they were signed. To the extent there are any minor date discrepancies, they have no effect on the issues in this appeal.

4 this section referenced attachment 8b(5). Attachment 8b(5) stated that expert fees were warranted “per Code of Civil Procedure section 998,” because Scott had served a settlement offer under section 998 “upon Plaintiffs on March 16, 2023.” The section 998 offer was attached; it was addressed to Martin and Bessie only, and had blank signature lines allowing Martin and Bessie to accept the offer. Attachment 8b(5) continued, “Plaintiffs did not respond to Scott’s Section 998 Offer, before it expired pursuant to Code of Civil Procedure section 998(b)(2). Plaintiffs failed to obtain a more favorable judgment or award at trial. Accordingly, Scott respectfully requests costs for the post- offer services provided by his expert witnesses pursuant to Code of Civil Procedure section 998(c)(1).”6 On January 23, 2024, Scott filed a motion seeking an assignment of rents from Lauri, stating in part that he, the judgment creditor, “has a judgment against the judgment debtor in the amount of $775,195.47, plus 10% legal interest from entry of judgment.” Scott asserted in the motion, “The Court entered judgment on September 27, 2023 and entered a corrected judgment on October 2, 2023. [Scott] filed a cost bill for $175,195.47 on October 11, 2023. [Lauri] did not file a motion to tax costs or otherwise object to or challenge the cost bill. . . . [Lauri] has not filed an appeal and the judgment is now final. [¶] The judgment awarded [Scott] the $600,000 as awarded by the

6 As discussed more fully below, section 998 states that if a defendant’s section 998 offer is not accepted and the plaintiff fails to obtain a more favorable judgment, the plaintiff “shall pay the defendant’s costs from the time of the offer,” including “postoffer costs of the services of expert witnesses.” (§ 998, subd. (c)(1).)

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Warren v. Shahar CA2/4, Counsel Stack Legal Research, https://law.counselstack.com/opinion/warren-v-shahar-ca24-calctapp-2026.