What are the legal consequences of losing an action against an opposing party for attorney fees?

California, United States of America

The following excerpt is from Harbison-Mahony-Higgins Builders, Inc. v. Argonaut Constructors, A131575 (Cal. App. 2012):

Under American common law, parties are expected to bear their own litigation expenses, including attorney fees. (Davis v. KGO-T.V., Inc. (1998) 17 Cal.4th 436, 439.) Notwithstanding that general rule, Code of Civil Procedure section 1032, subdivision (b) allows a prevailing party in litigation to recover a limited number of costs against an unsuccessful opponent. Code of Civil Procedure section 1033.5, subdivision (a) provides an exclusive list of these "allowable costs," including attorney fees only if otherwise

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