Section 1717/Settlement: Lower Court Erred In Denying Contractual Fees To Prevailing Party Upon Written Reply Memorandum Request Before Party Had Chance To Properly File Motion For Fees

 

Denial Order Changed to Provide Prevailing Party Was Entitled to Fees Upon Subsequent Motion.

     In Salazar v. Salazar, Case No. D061716 (4th Dist., Div. 1 Nov. 4, 2013) (unpublished), a court enforced a settlement agreement between brothers, with the agreement and a promissory note containing fees clauses in the event of a default. However, the lower court denied non-defaulting brother’s motion for fees made in a reply memorandum submitted in support of a motion to enforce the settlement agreement, indicating that he did not follow the correct procedure in presenting it through a formal noticed motion.

     The appellate court reversed this denial. The trial court, instead, should have allowed brother to file a subsequent fees motion and then rule upon it as the prevailing party. The outright denial was erroneous, with the reviewing court observing that the correct ruling was to find non-defaulting brother was the prevailing party and was entitled to fees based upon bringing a proper subsequent fees motion.

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