No Reduction For Loss On Fraud Claim Mandatory Under Section 1717.
In XTC Investments v. Stingl, Case No. B279577 (2d Dist., Div. 4 Mar. 28, 2018) (unpublished), respondents filed cross-claims for breach of contract, indemnity, and fraud against appellants, with respondents winning on their cross-claims except for the fraud claim to the extent of $1,311,772. The trial judge then awarded $98,330.65 under Civil Code section 1717 to respondents.
This result was affirmed on appeal. The trial court did not have to reduce for respondents not prevailing on their fraud cross-claim, especially given that there was no affirmative money awarded on an offset basis. Equitably, under section 1717, the lower court did not have to reduce fees on the fraud claim loss when the other cross-claims resulted in a clear victory.