Procedural Posture


Defendant seller appealed from an order of the Municipal Court for the Whittier Judicial District of Los Angeles County (California), which entered judgment for plaintiff purchasers against defendant and denied defendant's motion to tax costs. Visit the attorney to sue for breach of contract San Diego and hire an attorney for the legal issues.

Overview

Plaintiff purchasers sued defendant seller for breach of a real property contract. The court entered judgment for plaintiffs against defendant and awarded court costs and attorney's fees. Plaintiffs filed a cost memorandum claiming attorneys' fees as costs pursuant to Cal. Civ. Code § 1717. Defendant filed a motion to tax costs, which was denied. Defendant appealed from this order in respect to her motion to tax costs. On appeal, the court reversed, holding that a party seeking to recover attorneys' fees as the prevailing party in an action on a contract providing for such fees must make an election whether to plead and prove such fees as damages under the contract or claim them as costs of suit. The court found that plaintiffs submitted their right to attorneys' fees to the court as damages under the contract, and therefore the alternative of claiming additional fees as costs was no longer available to them.

Outcome

The court reversed the order denying defendant seller's motion to tax costs, holding that plaintiff purchasers could recover attorneys' fees as the prevailing party in an action on a contract providing for such fees as damages under the contract or claim them as costs of suit, but they could not do both.