We Predicted This Result In Our February 19, 2014 Post On The Issue.
Way back in February 19, 2014, we did a post on small claims fee recovery, predicting that the $150 cap for fee recovery for a small claims fee litigant winning after a superior court de novo hearing would “trump” a contractual Civil Code section 1717 clause allowing for more fees (keeping in mind that more can be awarded if the superior court believes the de novo hearing was pursued in bad faith).
We can now report that the Fourth District, Division 1 has agreed with our analysis in Dorsey v. Superior Court, Case No. D067836 (4th Dist., Div. 1 Oct. 22, 2015) (published). There, prevailing tenants were awarded over $10,000 in attorney’s fees after winning a superior court de novo hearing based on a contractual fees clause. The losing side appealed, arguing that CCP §116.780(c) capped the fee recovery amount at $150.
After a careful review of the legislative history behind the small claims statute, the appellate court agreed that section 116.780(c) did indeed trump the contractual fees clause. A writ petition was granted overturning the higher fee award.