Is a plaintiff entitled to attorney's fees if a tort-based action is commenced arising out of the Operating Agreement?

California, United States of America


The following excerpt is from U.S. Grant Hotel Ventures, LLC v. Am. Prop. Mgmt. Corp., D066490 (Cal. App. 2016):

The Operating Agreement provided: "If any legal action . . . is commenced arising out of this Agreement, the prevailing party shall be entitled to an award of its attorneys' fees and expenses . . ." "The phrase 'prevailing party' shall include a party who receives substantially the relief desired whether by dismissal, summary judgment, judgment or otherwise." The language of this provision is broad enough to encompass both contract actions and actions in tort. (Lerner v. Ward (1993) 13 Cal.App.4th 155, 157-158, 160 [noting the language " 'arising out of this agreement' " supported an award of attorney's fees for tort-based causes of action].)

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