This California Law Firm Publication by Jackson Lewis P.C. addresses Williams v. Chino Valley Ind. Fire District, in which the California Supreme Court found that a prevailing defendant in a California Fair Employment and Housing Act (FEHA) case must demonstrate that the plaintiff's FEHA claim was frivolous, unreasonable or groundless in order to recover the litigation costs. The court determined that FEHA was an exception to the provision in the California Code of Civil Procedure (CCP) that states that prevailing defendants could recover costs as a matter of right. Prior to Williams, California courts typically applied this CCP standard, which is consistent with the federal Title VII standard. The California Supreme Court found that the standard used for recovering attorneys' fees under FEHA should apply to the recovery of costs as well. The court noted that the statutory language and legislative history favor this standard and that it meets public policy because the financial risk of possibly paying large cost awards might discourage individuals from bringing meritorious suits. The Williams ruling will likely increase the number of discrimination lawsuits because the financial risk of filing a potentially meritless suit is diminished.