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Note: To obtain a stay of execution from an adverse decision in a construction contract dispute, D. L. Falk Construction, Inc. (Applicant) posted a standby letter of credit in lieu of an appellate bond. When Applicant prevailed in the suit, it sought to recover the interest that was paid on sums borrowed to fund the standby.

The Superior Court of San Mateo County (California) denied the recovery of interest. On appeal, The Court of Appeal of California, First Appellate District, Richman, J., affirmed. The appellate court reasoned that "appellate costs are not made recoverable by the mere fact that they are reasonable; they are recoverable only as authorized by statute or rule of court", and the relevant statute does not warrant the recovery of interest.

[JEB/yn]

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