Fee Clause Interpretation, Settlement: Settlement Agreement Language Only Allowed Enforcement Activities Associated With The Settlement

Other Non-Settlement Activities Were Improperly Awarded As Attorney’s Fees.

               Bodero & Associates, Inc. v. Gorman, Case No. A168856 (1^st Dist., Div. 5 Sept. 20, 2024) (unpublished) is a good example as to when four-corner contractual interpretation will govern a fee dispute, unfortunately requiring a limited remand.  Parties entered into a settlement agreement with standard terms, requiring payment of a monetary judgment if there was a breach of the settlement, requiring payment of potential fees and costs if there was a breach of the settlement, and otherwise requiring no fees and costs expended previously in the case being awarded to other side.  Plaintiff was not paid, obtained judgment for the specified amount and requested all attorney’s fees since the action was filed.  The lower court granted the fee request, but that led to a reversal.  The problem was that the fee award was not calibrated to the settlement language only relating to fees incurred to enforce the settlement agreement, not prior activities.  Reversed and remanded.