Heckert

Defendants and cross-complainants Gerald P. Heckert, Claudette E. Heckert, John A. Brooks, Marian J. Brooks, George F. Heckert, and Valerie Heckert (appellants) appeal from the judgment and post-judgment order denying their requests for attorney fees based on the “third party tort” exception to the general rule that each party must pay his own attorney fees. (Code Civ. Proc., § 1021.) In affirming, we will hold that: (1) Sellers of real property, adjudged completely indemnified by their broker against their joint adverse judgment obtained by buyers solely because of the broker’s tort, are entitled to recover from broker reasonable attorney fees incurred by sellers in defense of the action leading to such judgment as damages proximately caused by broker’s tort; and (2) such attorney fees, so incurred, must be mitigated by the pecuniary value of any special benefit to sellers conferred by broker’s tortious conduct.

Procedural/Factual Background

Appellants purchased a 31-unit apartment building located in the City of San Carlos from David J. MacDonald and others in 1978 for $900,000. MacDonald (broker), a real estate broker and respondent in this appeal, acted as broker on…