Legal Question in Civil Litigation in California

Ordinarily the plaintiff and defendant would each pay their own attorney fees. If the defendant has a legal basis to claim attorney fees from the plaintiff (usually a contract term and/or a statute entitling her to recover her fees), then she can ask the court to make the plaintiff pay her costs. But if the parties signed a valid settlement agreement which says how attorney fees would be allocated, they would be bound by that agreement.

A plaintiff who dismisses a case with prejudice risks being sued by the defendant for abuse of process. That doesn't mean it will happen or that the suit would succeed, but it is a very real risk. A well-written settlement agreement would eliminate that risk. If you are the plaintiff and are considering whether to dismiss your case, I urge you to consult with an attorney first.