Fee Clause Interpretation, Section 1717: Lower Court Erred In Denying Fees To A Parties’ Successor Under An Easement Settlement Agreement

Fees Clause Did Encompass The Parties And Their Successors.

            In Elusive 8307, LLC v. Canterman, Case No. B321096 (2d Dist., Div. 4 Jan. 3, 2024) (unpublished), prior owners of plaintiff's and defendant's adjacent properties entered into a settlement agreement granting an easement to plaintiff over a portion of defendant’s property.  Plaintiff lost an easement interpretation dispute with defendant, but defendant was denied attorney’s fees under an attorney’s fees provision in the settlement agreement.  The 2/4 DCA panel reversed.  Plaintiff did seek to interpret the easement settlement agreement so that its claims were founded “on the contract” under Civil Code section 1717.  Because both parties were successors-in-interest under the settlement agreement, that meant the fees clause was binding on subsequent parties.