Eden Township Healthcare District v. Eden Medical Center

Cross-defendant Eden Medical Center (EMC) appeals the trial court’s order denying its motion for attorney fees under Civil Code section 1717 (section 1717). The motion was denied after cross-complainant Eden Township Healthcare District (District) unsuccessfully sought declaratory relief to have certain agreements declared illegal and void under Government Code section 1090. EMC claims the court erred in finding that the action on which EMC prevailed was not “on a contract” within the meaning of section 1717. We agree and reverse, and remand to the lower court to award EMC its attorney fees.

FACTUAL BACKGROUND AND PROCEDURAL HISTORY

This is the second time we have considered an appeal in this case. (See Eden Township Healthcare Dist. v. Sutter Health (2011) 202 Cal.App.4th 208 [ 135 Cal.Rptr.3d 802 ] (Eden I).)

The Parties and the History of Their Written Agreements

We quote at length from our discussion of the facts in our prior opinion:

“The District is a public agency established in 1948 pursuant to California’s Local Health Care District Law (Health & Saf. Code, § 32000 et seq.). The mission of the District is to ‘fulfill the function of protecting the public…