Perspective
Jan. 10, 2014
Contractual attorney fees conundrums
Civil Code Section 1717 sounds straightforward and if it applied to every single suit involving a contract fee provision, it would be. But of course, it's not that simple. By Gary A. Watt
Counsel for Alpha is reviewing a proposed contract and notices the other side has included a unilateral attorney fees provision. It states that in the event of litigation, if Bravo is the prevailing party then Bravo will be entitled to attorney fees. It says nothing about Alpha. The deal is on a fast track and has to close soon, so counsel decides not to object to the one-way proviso. After all, counsel concludes, since a contractual fee provision...
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