Borrower Did Not Invoke Directly The Terms of Agreements With Fee Clauses.
In Thomas v. Seterus, Inc., Case No. A155170 (1st Dist., Div. 2 July 2, 2019) (unpublished), lenders moved for post-trial attorney’s fees based on note and trust deed fees clauses against a borrower bringing claims based on the California Homeowners Bill of Rights (HBOR). Lenders sought to recoup $334,557.50 in fees, but the trial court concluded that borrower’s claims were not “on the contract” under Civil Code section 1717. The appellate court agreed. Even though the note and trust deed were in the background all along the way, borrower was careful only to invoke HBOR rather than invoking the fee clauses under the loan agreements.