Title 14. Of Miscellaneous Provisions · Chapter 6. Of Costs · Last amended 2018 · Last verified July 28, 2026
In one sentenceSection 1032 is California's general costs statute: it defines who qualifies as the prevailing party, generally whoever gets a net monetary recovery or a favorable dismissal, and entitles that party to recover costs as a matter of right in most civil actions, unless another statute says otherwise.
(a)As used in this section, unless the context clearly requires otherwise:
(1)"Complaint" includes a cross-complaint.
(2)"Defendant" includes a cross-defendant, a person against whom a complaint is filed, or a party who files an answer in intervention.
(3)"Plaintiff" includes a cross-complainant or a party who files a complaint in intervention.
(4)"Prevailing party" includes the party with a net monetary recovery, a defendant in whose favor a dismissal is entered, a defendant where neither plaintiff nor defendant obtains any relief, and a defendant as against those plaintiffs who do not recover any relief against that defendant. If any party recovers other than monetary relief and in situations other than as specified, the "prevailing party" shall be as determined by the court, and under those circumstances, the court, in its discretion, may allow costs or not and, if allowed, may apportion costs between the parties on the same or adverse sides pursuant to rules adopted under Section 1034.
(b)Except as otherwise expressly provided by statute, a prevailing party is entitled as a matter of right to recover costs in any action or proceeding.
(c)Nothing in this section shall prohibit parties from stipulating to alternative procedures for awarding costs in the litigation pursuant to rules adopted under Section 1034.
Plain-English Summary
Section 1032 is the workhorse of this chapter, the default rule nearly every California civil case eventually runs through when the litigation ends. Subdivision (a) starts with definitions that broaden the section's reach: a "complaint" includes a cross-complaint, a "defendant" includes a cross-defendant and anyone against whom a complaint or answer in intervention is filed, and a "plaintiff" includes a cross-complainant and anyone who files a complaint in intervention. Those definitions mean the prevailing-party framework applies just as fully to cross-actions and interventions as it does to the original complaint.
The prevailing-party definition itself, in subdivision (a)(4), covers four categories: a party with a net monetary recovery, a defendant who obtains a dismissal, a defendant where neither side obtains any relief, and a defendant against plaintiffs who recover nothing against that particular defendant. Cases that don't fit neatly into one of those categories, where a party wins something other than money, for example, get resolved by the court's own determination of who prevailed, and the court then has discretion whether to allow costs at all and how to apportion them between the sides.
Subdivision (b) is the section's central command: except where a statute expressly says otherwise, a prevailing party is entitled to costs as a matter of right, not court discretion. That entitlement is what makes § 1032 different from the many discretionary cost provisions scattered elsewhere in this chapter and the code -- once a party qualifies as prevailing under the default categories, recovering costs isn't up to the judge's discretion.
Subdivision (c) leaves room for the parties to do their own thing: nothing in this section stops parties from stipulating to alternative procedures for awarding costs, under rules the Judicial Council adopts pursuant to § 1034. And the term "prevailing party" recurs throughout this chapter and the broader code -- sections like §§ 1021.9, 1028, and 1031 all use it -- so getting the § 1032 definition right often shapes how those other fee-and-cost statutes apply as well.
Frequently Asked Questions
How does Section 1032 define a prevailing party?
Generally as the party with a net monetary recovery, a defendant who wins a dismissal, a defendant where neither side gets any relief, or a defendant against plaintiffs who recover nothing against it, with the court deciding in any other situation.
Is a prevailing party guaranteed to recover costs?
Yes, in most cases. Subdivision (b) makes cost recovery a matter of right for the prevailing party unless a specific statute provides otherwise.
What happens when the outcome doesn't fit the statute's listed prevailing-party categories?
The court determines who prevailed and has discretion whether to allow costs at all, and may apportion costs between the parties.
Does Section 1032 apply to cross-complaints?
Yes. Subdivision (a) defines "complaint," "defendant," and "plaintiff" to include cross-complaints, cross-defendants, and cross-complainants, so the same prevailing-party rules govern cross-actions.
Can parties agree to handle costs differently than Section 1032 provides?
Yes. Subdivision (c) lets parties stipulate to alternative cost-award procedures under rules the Judicial Council adopts pursuant to § 1034.
Amendment History
Amended by Stats 2017 ch 131 (AB 1693),s 2, eff. 1/1/2018.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
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