Section 1717/Standard of Review: Elements Of Contractual Fee Recovery Nicely Set Forth In Unpublished Decision

 

4/3 DCA Does It Succinctly And Well.

    Presiding Justice O’Leary, in a 3-0 unpublished decision by the Fourth District, Division 3, affirmed a $76,890 contractual fee award against a plaintiff unsuccessfully attempting to unwind a foreclosure sale in Melgar v. Deutsche Bank National Trust, Case No. G051225 (4th Dist., Div. 3 Jan. 4, 2016) (unpublished). 

    In doing so, she provided a succinct, accurate roadmap to a contractual fee recovery under Civil Code section 1717:  (1) whether the contract permitted fee recovery; (2) whether the winning side was a prevailing party for purposes of section 1717; and (3) whether the requested fees were reasonable.  Nicely done.  Justice O’Leary also indicated that (1) is a de novo appellate review issue, while (2) may be de novo or abuse of discretion under the circumstances, and (3) is scrutinized for abuse of discretion.  
 

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