Prevailing Party/Section 1717: $152,791.50 Fee Award To Prevailing Defendants, Even Though One Of The Defendants Also Only Won One Out Of Four Cross-Claims, Sustained On Appeal.

 

Prevailing Party Determination Was A Discretionary One For Lower Court.

    In Enayat v. Missaghi, Case No. B260861 (2d Dist., Div. 5 Nov. 17, 2016) (unpublished), defendants won a “waste” lease dispute against a plaintiff alleging two tort claims, and one of the defendants also won on a slander cross-claim (resulting in $1 nominal damages), but lost on three other cross-claims.  Both the original lease and a settlement agreement had fees clause, so defendants moved for recovery of fees under Civil Code section 1717.  The lower court determined they were prevailing parties and awarded them $152,791.50.

    The fee award was affirmed on appeal.  Although plaintiff argued that the lease was superseded by the settlement agreement on a novation theory, this contention did not resonate because both documents had fees clauses.  Plaintiff then argued he was the prevailing party after winning three of four cross-claims, but the appellate court found the lower court did not abuse its discretion in determining defendants prevailed for fee purposes.  Defendants did prevail on plaintiff’s complaint, and neither party (plaintiff and the one defendant/cross-complainant) achieved complete victory under the cross-complaint such that the lower court had discretion to determine who prevailed; its decision was no clear abuse of discretion.

    Presiding Justice Turner penned the 3-0 opinion.