California Appeals Court Upholds Nearly $5 Million Legal Fee Award

A California state agency has been ordered to cover nearly $5 million in legal fees after losing a long-running employment case.

The dispute began when Diana Bronshteyn sued her former employer, the California Department of Consumer Affairs, under the Fair Employment and Housing Act (FEHA). FEHA is California’s primary civil rights law covering employment discrimination, sexual harassment, and retaliation. After the agency fought the case through trial and appeal, a jury found in Bronshteyn’s favor. The trial court then awarded her lawyers $4,889,786.03 in attorney fees.

The Department challenged the award, arguing it was excessive. But on September 17, 2025, the California Court of Appeal affirmed, finding no abuse of discretion by the trial court

B329890 Brohnshteyn v DCA Attor…

“Filing a flood of unselective and fruitless motions can be counterproductive if the plaintiff ultimately prevails, for the bill for that flood will wash up on the defense doorstep.” — Court of Appeal

The trial judge noted that the Department chose not to settle the case early, which meant Bronshteyn’s legal team had to spend years preparing and trying the case. That effort, the court said, was reflected in the large number of hours billed.

Because the case was brought under FEHA, California’s one-way fee-shifting rule applied. This rule allows prevailing employees to recover attorney fees and even litigation costs from the employer, while employers almost never receive such awards if they win. The policy is intended to encourage workers to pursue civil rights claims, but it also leaves employers exposed to paying not only their own defense bills, but also the plaintiff’s full legal tab.

The case underscores the risks defendants face in fee-shifting lawsuits: aggressive litigation strategies can lead to massive financial consequences if the plaintiff ultimately prevails.

Case: Bronshteyn v. Department of Consumer Affairs (Sept. 17, 2025, B329890, B327487)

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