In what circumstances will a real estate agent and real estate broker be successful in a claim for attorney fees?

California, United States of America


The following excerpt is from SMS.ac, Inc. v. Rowland, D048285 (Cal. App. 5/30/2007), D048285 (Cal. App. 2007):

Similarly, in Xuereb v. Marcus & Millichap, Inc. (1992) 3 Cal.App.4th 1338 (Xuereb), purchasers of real estate sued a real estate agent and real estate broker for negligence, products liability, fraud, misrepresentation, breach of fiduciary duty and breach of contract arising out of the property purchase, contending that the agents failed to competently inspect the property and negligently handled the transaction. (Id. at pp. 1341, 1343.) After the jury returned a verdict in the realtors' favor, they sought to recover their attorney fees pursuant to the purchase agreement, which provided in relevant part "[i]f this agreement gives rise to a lawsuit or other legal proceeding between any of the parties hereto . . . , the prevailing party shall be entitled to recover actual court costs and reasonable attorneys' fees . . . ." (Id. at p. 1340.)

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