Litigation
Mar. 21, 2013
One-way fee shifting proves risky
Civil Code Section 1717, which makes one-way fee-shifting provisions mutual in actions on the contract, will not save such a provision if the action sounds in tort. By Gerald G. Knapton and Kim Karelis
We have seen a growing number of rather draconian and very broadly worded attorney fees clauses that are one-sided, and as we read these provisions we have had in the backs of our minds the savings effect of Civil Code Section 1717(a) which makes such fee shifting mutual to the "prevailing party." We have therefore felt that since each side had the same potential exposure, why worry? However, a recent opinio...
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