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 the insured. The lower court then assessed $321,338.54 in attorney’s fees against insurance company based on a contractual fees clause in the agreements for insured’s administrative proceeding work. Insurance company’s arguments on appeal did not overturn the fee award.
Administrative proceeding work was within the scope of the fees clause. An administrative mandamus was “on the contract” under Civil Code section 1717 where the main issue was whether the agreement was unenforceable. The fee award was not premature despite the existing of further litigation because the mandamus determination was a final determination in insured’s favor.