Deed Of Trust, Section 1717: Plaintiff’s Post-Foreclosure Challenges To Sheriff’s Sale Was Not “On The Contract” For 1717 Fee Purposes

 

$63,120 Fee Award Reversed.

     The Second District, Division 5, in Vega v. Goradia, Case No. B254585 (2d Dist., Div. 5 Feb. 26, 2015) (unpublished), confronted a $63,120 fee award to a prevailing defendant in an action brought by a plaintiff making certain post-foreclosure challenges to a sheriff’s sale (such as alleged notice of sale and credit bid irregularities). The trial judge decided fees were appropriate under Civil Code section 1717 based on a fees clause in the note and deed of trust. Not so, said the appellate court. The challenges were post-foreclosure and were not “on the contract” for 1717 fee recovery purposes. Reversed.