Hadley

Defendant prevailed in an action on a contract and was awarded attorney’s fees and costs totalling less than 20 percent of his actual expenses. On appeal he claims the award was unreasonable and an abuse of the trial court’s discretion. For reasons which follow, we agree and reverse the judgment.

I.

In February 1980, Hadley Realty and Investments, Inc. initiated a lawsuit against Lou Krepel, seeking damages of $25,000 for an unpaid broker’s commission pursuant to a real estate purchase contract and receipt for deposit. The complaint alleged four causes of action: breach of contract, fraudulent misrepresentation, negligent misrepresentation, and quantum meruit. It was amended a few months later to substitute Eugene C. Hadley dba Hadley Realty and Investments in lieu of Hadley Realty and Investments, Inc., and again in June 1982 to add Robert Forslund and Jean Forslund as plaintiffs.

The contract contained the following provision: “In any action between Broker and Seller arising out of this agreement, the prevailing party shall be entitled to reasonable attorney’s fees and costs.”

From June 1980 through March 1982, defendant was represented by J. William Druary of the…