Shawback

Defendants appeal from an order denying their motion for attorney fees. They contend they are entitled to ah award of attorney fees after prevailing at trial, pursuant to the terms of a contract.

We reverse the order of the trial court and remand the matter for determination of a reasonable award of attorney fees.

Background

Plaintiffs filed a complaint asserting causes of action for breach of contract, rescission, fraud, concealment, and negligent misrepresentation. The complaint alleged that plaintiffs had purchased real property in Half Moon Bay from defendants, and that defendants had concealed or misrepresented the condition of a septic tank and the existence of toxic waste on the property. Plaintiffs later amended their complaint to omit the cause of action for breach of contract.

After a jury returned special verdicts in favor of defendants on all causes of action and the court entered judgment in favor of defendants, defendants moved for attorney fees pursuant to a clause in the real estate purchase agreement and Civil Code section 1717. The court denied defendants’ motion, and defendants appeal.

Discussion

Defendants contend that as prevailing parties in…