NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA. v. Furth, Fahner, Bluemle & Mason

ORDER RE MOTION FOR JUDGMENT ON THE PLEADINGS

Plaintiff brought this action for declaratory relief against a San Francisco law firm to which it had issued a policy of insurance, alleging that it has no obligation to defend or indemnify its insured in GHD Associates, Inc. v. Frederick P. Furth, Inc. et al., Civil Action No. 796803, currently pending in the Superior Court of the State of California for the City and County of San Francisco. Defendant then filed counterclaims for declaratory relief, breach of contract, breach of covenant of good faith and fair dealing, and breach of fiduciary duty, and sought to recover its attorneys’ fees in this action as compensatory damages for plaintiff’s alleged breach of its covenant of good faith and fair dealing. This matter is now before the court on plaintiff’s motion for judgment on the pleadings striking defendant’s prayer for attorneys’ fees. For the reasons set forth below, the motion will be denied.

Under California law, attorneys’ fees are not recoverable by a prevailing party absent an agreement between the parties or a statute allowing such recovery. Cal.Code Civ.P. § 1021. A prevailing party on a cause of action sounding in tort,…