Fee Clause Interpretation: Tenant Winning Damages Under Municipal Code And Statutory Provisions Properly Awarded Fees Even Though Rental Agreement Precluded Fee Recovery On Contractual Claims

Statutory Entitlement To Fees Was Independent From Recovery Under A Contractual Fees Clause.

               In Dostie v. Marowitz, Case Nos. A168780 et al. (1^st Dist., Div. 2 Nov. 22, 22, 2024) (unpublished), plaintiff tenant won $60,000 in damages against defendant former landlord for failure to maintain the premises, gender discrimination, and emotional distress.  Defendant landlord defenses some contractual claims.  The rental agreement had this fees clause: “If, in the event of any dispute, a legal action becomes necessary regarding this rental agreement or the parties to this agreement, each party shall bear the cost of their own legal representation in any and all matters related to such legal action.”   The lower court awarded tenant $22,750 in fees under an Oakland tenant protection ordinance, the Unruh Act, and FEHA.  Landlord argued that the contractual fees clause prevented a fee award, but the appellate court found that the award was justified because municipal and state statutory entitlements were the bases for the fee award, not contractual bases (finding the clause did not reach non-contractual claims, but did explain why landlord did not seek fees for winning on contractual claims).