California, United States of America
The following excerpt is from Smith v. Krueger, 150 Cal.App.3d 752, 198 Cal.Rptr. 174 (Cal. App. 1983):
Therefore, as vendors in the land sale contract, plaintiffs were compelled to protect their interest in the secured property from defendants' attempted enforcement of both the acceleration clause contained in the deed of trust and the attorney's fees provision incorporated therein. Plaintiffs were potentially liable for the full balance of the secured debt plus attorney's fees if defendants had prevailed. This clear liability invokes reciprocal considerations and leads us to conclude plaintiffs were properly entitled to avail themselves of section 1717. (See Saucedo v. Mercury Sav. & Loan Assn. (1980) 111 Cal.App.3d 309, 314-315, 168 Cal.Rptr. 552.)
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