Is a contract that allows only one party to collect attorney fees enforceable?

California, United States of America


The following excerpt is from Nguyen v. Cataldo, B302412, B303186 (Cal. App. 2020):

Civil Code section 1717, subdivision (a) provides that "[i]n any action on a contract, where the contract specifically provides that attorney's fees and costs, which are incurred to enforce that contract, shall be awarded either to one of the parties or to the prevailing party, then the party who is determined to be the party prevailing on the contract, whether he or she is the party specified in the contract or not, shall be entitled to reasonable attorney's fees in addition to other costs." In other words, contractual attorney fees are reciprocal: Even if a contract by its own terms allows only one party to obtain attorney fees, under section 1717, the other party is eligible for attorney fees if it prevails. (Santisas v. Goodin (1998) 17 Cal.4th 599, 610-611.) In addition, if a party sues under a contract that would allow it to collect attorney fees, and the opposing party successfully demonstrates that the contract is invalid, the prevailing party is still entitled to contractual attorney fees under section 1717. (Santisas v. Goodin, supra, at p. 611.)

Other Questions


Is a contract that specifically provides for attorney's fees and costs incurred to enforce the contract enforceable? (California, United States of America)
What is the test for enforceability of a written contract where the contract states that the parties intended to enforce the terms? (California, United States of America)
Can an attorney fee provision in a contract allow a plaintiff to claim attorney fees against the opposing party? (California, United States of America)
What is the test for enforceability of a contract where the contract does not meet the reasonable expectations of the opposing party? (California, United States of America)
Is a contract allowing the prevailing party to recover attorney fees in the event of an action being dismissed? (California, United States of America)
What is the test for enforcement of a contract where the contract was signed expressly for the benefit of a third party? (California, United States of America)
When a contract contains a provision for attorney fees to the prevailing party contains a clause in the contract that makes an otherwise unilateral right reciprocal? (California, United States of America)
What is the test for imposing a sanction including an order requiring an attorney for one party to pay attorney fees for an opposing party? (California, United States of America)
When a contract contains a provision for attorney fees, can a successful party recover attorney fees? (California, United States of America)
Is a client's attorney required to repay all moneys laid out by the attorney to the attorney before the client can make a claim against the attorney? (California, United States of America)
X



Alexi white


"The most advanced legal research software ever built."

Trusted by top litigators from across North America.