Does section 1717 of the California Civil Code guarantee mutuality of remedy for attorney fees under contractual attorney fee provisions?

California, United States of America


The following excerpt is from Royal Capital Holdings, Inc. v. Chase Pizza, Inc., B278993 (Cal. App. 2017):

Civil Code section 1717 "ensures mutuality of remedy for attorney fee claims under contractual attorney fee provisions . . . in at least two situations. [Citation.]" (Sessions, supra, 84 Cal.App.4th at p. 678.) The first situation involves a unilateral attorney fee contract, which provides the right to recover attorney fees to one party but not to the other. (Santisas v. Goodin (1998) 17 Cal.4th 599, 610-611 (Santisas).) In such circumstances, Civil Code section 1717 allows recovery of attorney fees by "whichever contracting party prevails," whether or not the contract specifies that party. (Santisas, at p. 611.)

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