The court of appeals affirmed in part and vacated in part a judgment of the district court and remanded. The court held that the district court erred in awarding attorneys fees for time spent on a motion to dismiss a claim made under 42 U.S.C. §1983 that had not been found to be frivolous.
The City of Dunsmuir sued David Fabbrini for fraud and declaratory relief in connection with his alleged failure to sufficiently collateralize a municipal loan. Later, the city voluntarily dismissed the action. Fabbrini sued the city under 42 U.S.C. §1983 for malicious prosecution and state-law defamation.
