Section 1717: Work Authorization Fee Clause Justified $102,025 Fee Award

Work Authorization Was Part of the Contract, Sustaining Fee Recovery.

     Cooley’s General Pest and Termite Control, Inc. v. Westlake Bay Homeowners Assn., Case No. B221937 (2d Dist., Div. 6 May 24, 2011) (unpublished) is a case where an HOA was hit with a $102,025 attorney’s fees award under Civil Code section 1717. (Could have been worse, because plaintiff termite company requested $129,217.35 in feees.) HOA sought to rescind a termite eradication contract, but lost. Termite company won fees based on a fees clause in a work authorization attached to 31 inspection reports submitted to HOA.

     HOA’s appeal of the fee award did not succeed. In response to the argument that the work authorization was not a contract, the appellate court responded “get out of here” (but in much more refined reasoning–after all, we have to keep everyone awake once in a while). The overall “deal” showed that the work authorization was part and parcel of the contractual bargain, with integrated documents being considered part of the gestalt. Fee award affirmed.

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