California, United States of America
The following excerpt is from Gaggero v. First Federal Bank of California, B207273 (Cal. App. 11/30/2009), B207273. (Cal. App. 2009):
The attorney fees provisions of a contract are subject to the provisions of Civil Code section 1717 (Santisas v. Goodin (1998) 17 Cal.4th 599, 616) which provides in subdivision (a), in relevant part: "In any action on a contract, where the contract specifically provides that attorney's fees and costs, which are incurred to enforce the 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." Subdivision (b)(2) provides, however, "Where an action has been voluntarily dismissed or dismissed pursuant to a settlement of the case, there shall be no prevailing party for purposes of this section."
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