In awarding fees under CCP 425.16, the trial court did not err in using a market rate for the hourly rate rather than the discounted rate that defense attorneys charge high-volume insurance clients. This market rate approach has been applied in cases involving in-house counsel, contingency fees, and pro bono work. The reasonable market rate need not mirror the actual rate billed. A trial court has discretion to award an hourly rate under the lodestar method that exceeds the rate that was actually incurred or paid.