In some cases -- complex construction litigation comes to mind -- fees for a referee can be one of the most substantial costs of litigation.  Yesterday, the Fifth District California Court of Appeal held that a stipulated judicial reference agreement under CCP 638 precludes recovery of prevailing party's fifty percent share of the referee's fees as an item of costs if the parties have agreed in the reference stipulation to split the referee fees.

Solution?  Include in your agreement a provision indicating that the prevailing party in the litigation will be entitled to recover its half of the referee's fees.

See Carr Business Enterprises, Inc. v. City of Chowchilla with gratitude to the Met News for briefing these cases for us and to LACBA for putting them in our in-box every evening.