$150,000 Was The Fee Award Affirmed In Lenders’ Favor As Prevailing Cross-Defendants.
Hom v. Petrou, Case No. A161770 (1st Dist., Div. 4 Aug. 3, 2021) (published) involved a $150,000 contractual attorney’s fees award in favor of lenders obtaining a dismissal of a cross-complaint alleging primarily tort claims. The 1/4 DCA affirmed, holding that there is no blanket rule prohibiting nonsignatories from collecting fees on tort claims—analyzing several cases to reach this holding and deciding that any ultimate conclusion rested on the particular wording of the contract at issue. Specifically, the lease established that lenders were third-party beneficiaries, with the fees clause language not disqualifying lenders from being considered as parties to the clause and with the breadth of the language encompassing tort claims.