Can a plaintiff recover attorney fees under a business purchase agreement?

California, United States of America


The following excerpt is from Palmer v. Patel, H039336 (Cal. App. 2014):

In Yoo v. Jho (2007) 147 Cal.App.4th 1249, the buyer of a business substantially involved in the sale of counterfeit merchandise sued the seller for breach of contract and fraud. (Id. at pp. 1251-1252, 1256.) The buyer sought rescission. (Id. at p. 1252.) The appellate court determined that the object of the business purchase agreement was illegal and the trial court erred by awarding any relief because "the parties were precluded from utilizing the court to enforce their illegal bargain." (Id. at pp. 1255-1256.) Since the purchase agreement was "not legally enforceable due to its illegal object," the seller was not entitled to recover attorney fees under the purchase agreement's attorney fee provision. (Id. at p. 1256.)

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