California, United States of America
The following excerpt is from Gifted Schools v. Grahovac Construction Company, D051905 (Cal. App. 11/19/2009), D051905. (Cal. App. 2009):
In Loduca v. Polyzos (2007) 153 Cal.App.4th 334, 343-344, the court held that a homeowner was indisputably a third party beneficiary to the subcontract between the homeowner's general contractor and a subcontractor, who was to put in cabinetry at the home. When the subcontractor did not perform adequately, the homeowner sued on the subcontract, and recovered damages. The attorney fees clause in the subcontract was held to be enforceable by the homeowner, because the clause did not operate to restrict any particular party from bringing suit on the contract (i.e., "If a court action is brought, prevailing party to be awarded attorneys fees and collection costs. . . ."). (Id. at p. 343.) The court said, "Nowhere does the contract impose any limitation on third party rights . . . . Under these circumstances, it is apparent [the parties to the subcontract] intended [homeowner's] enforcement right to include a right to attorney fees." (Id. at p. 344.) Both the benefits and burdens of the contract applied. (Id. at p. 345.)
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