Fee Clause Interpretation: Clause Allowing For Recovery Of “Legal Expenses” Sensibly Encompassed Recovery Of Attorney’s Fees

 

Lower Court Denial Based on Contrary Interpretation Reversed.

     The lower court in Dickerson Associates v. ShinYoung 3670, LLC, Case No. B232074 (2d Dist., Div. 2 Nov. 14, 2012) (unpublished) denied an attorney’s fees award to a prevailing party under a contractual fees clause allowing recovery for “legal expenses.” The trial judge apparently believed that the phrase might encompass something other than fees.

     Well, the appellate court simply believed this was a wrong contractual interpretation and reversed. The common sense, ordinary interpretation of “legal expenses” did encompass attorney’s fees, such that the prevailing party should have had its fee request evaluated on the merits.

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