Cases: Section 1717 – Page 6 – Cal Attorneys Fees

Prevailing Party, Reasonableness Of Fees, Section 1717: $200,000 Fee Award To Prevailing Defendant Affirmed Because Tort Claims Allowed For Recovery, Post-Dismissal, Under Santisas

November 18, 2022

Settlement With Other Parties Did Not Impact Analysis Of Fee Reasonableness As To The Prevailing Defendant. Carp Property, LLC v. Corona, Case No. B316354 (2d Dist., Div. 6 Nov. 17, 2022) (unpublished) was a situation where plaintiff litigated a matter for two years where there was a contractual fees clause in an operative agreement, […]

Section 1717: $321,338.54 Contractual Fee Award To Prevailing Party In Administrative Mandamus Proceeding

Cases: Section 1717

November 6, 2022

Mandamus Was “On The Contract” Under Section 1717 And Decision Was Final To Defeat Prematurity Argument. In The Traveler Indemnity Co. v. Lara, Case No. B306897 (2d Dist., Div. 7 Nov. 3, 2022) (published), insurance company lost an Insurance Commissioner administrative mandate proceeding concerning whether certain workers compensation agreements issued to it were unenforceable vis-à-vis

Section 1717: Defendant Nonsignatories To Settlement Agreement Defeating Contract Claims Entitled To Section 1717 Fees

Cases: Section 1717

October 8, 2022

After All, Defendants Did Show The Contract Was Inapplicable To Them, Such That The Hsu Decision Governed. One of our leading cases is Hsu v. Abbara, 9 Cal.4th 863, 870 [Leading Case #2] holds that a party is entitled to Civil Code section 1717 attorney’s fees when the party prevails on grounds the contract

Section 1717: $70,882.50 Attorney’s Fees Award Based On A Construction Subcontract Is Affirmed On Appeal

Cases: Section 1717

August 16, 2022

Neither Legal Entitlement Nor Fee Amount Arguments Prevailed On Appeal. Plaintiff subcontractor brought a third-party beneficiary action against general contractor which was resolved adversely on res judicata and statute of limitations grounds in a situation where there was a subcontract with a contractual fees clause encompassing “actual” attorney’s fees incurred. With a few subtractions

Section 1717: Interim Award Of Contractual Fees Under Civil Code Section 1717 Are Not Allowable Unless All The Claims In An Action Are Resolved

Cases: Section 1717

July 29, 2022

Premature Award Of $1.1 Million In Fees By Group Of Plaintiffs Reversed. A group of tenant plaintiffs in Chen v. Valstock Ventures, LLC, Case No. A161885 (1st Dist., Div. 4 July 29, 2022) (published) won about $1.1 million in an interim fee award against a defendant after winning a summary adjudication motion on their

Section 1717: If You Claim A Redlined Draft Agreement Is The Contract And You Lose, Fee Exposure Can Occur

Cases: Section 1717

July 29, 2022

4/1 DCA Affirms Fee Award Where Pleadings Made It Clear That Redlined Draft Agreement Was The Operative Contract By Losing Plaintiff. Plaintiff lost a demurrer without leave founded upon contractual breach, duty to negotiate in good faith, and promissory estoppel claims, a determination affirmed on appeal because the letter of intent made it clear

Allocation, Section 1717: $125,000 Fee Award To A Defendant Winning At The Pleading Stage Affirmed On Appeal

Cases: Allocation, Cases: Section 1717

July 10, 2022

This Decision Has A Nice Discussion Of The Policies Underlying Civil Code Section 1717. There is a nice discussion of the policies underlying Civil Code section 1717 and the claims which trigger fee exposure under this statute in Engage BDR, LLC v. Amobee, Inc., Case No. B309263 (2d Dist., Div. 8 July 7, 2022)

Prevailing Party, Section 1717: Performance Bond Surety Protecting Contractor Was Not The Prevailing Party Under Civil Code Section 1717 Where City Defensed Contractor’s Contract Claims And Surety Held City’s Contractual Recovery To Just $1.00

Cases: Prevailing Party, Cases: Section 1717

June 16, 2022

Lopsided Results May Make One A Prevailing Party, But The Outcome Was Mixed So The Lower Court Had Discretion To Determine No Side Prevailed. In the Civil Code section 1717 area, a prevailing party is one which has only “good news” as far as prevailing in litigation. Anything else, unless a result is overwhelmingly

Section 1717: Defendants’ Successful Defense That Plaintiff Failed To Prove The Existence Of Two Contracts Allowed Them To Obtain Contractual Fees Under Section 1717

Cases: Section 1717

June 2, 2022

Section 1717 Does Not Mandate That The Alleged Contract Be Entered Into Evidence. Civil Code section 1717 is a fee shifting statute that renders unilateral fee clauses bilateral under its mutuality-based principles. This statute likely has the most jurisprudence of any fee shifting statute in California published and unpublished decisions. It applies where a

Section 1717: On Rehearing, 2/6 DCA Decides That Void Indemnity Agreement With Fees Clause In A Public Agency Contract Does Not Allow For Fees Recovery By Other Litigants

Cases: Section 1717

May 23, 2022

Illegal Contract Was No Different Than Public Contract Void Due To Lack Of Authority. On February 6, 2022, we posted on a case for which rehearing was granted. The case is San Luis Obispo Local Agency Formation Comm’n v. Central Coast Development Co., Case No. B304144 (2d Dist., Div. 6 May 5, 2022) (published).