West Hills Farms, Inc. v. RCO AG Credit, Inc.

West Hills Farms and California Pistachios (plaintiffs), RCO (defendant) shareholders, sued alleging RCO paid unnecessary fees to a related company; the trial court, under California Corporations Code section 800, required the plaintiffs to post a $50,000 bond as security for RCO's litigation expenses before finding for RCO on the merits. RCO then moved to recover its actual $350,000 in attorney's fees and expenses, and the trial court limited recovery to the $50,000 bond; RCO appealed.

Whether a defendant in a shareholder derivative suit may recover attorney's fees exceeding the statutory bond amount the plaintiff was required to furnish as litigation security.