Jackson v. Homeowners Ass'n Monte Vista Estates-East

Defendant homeowners association appeals from a trial court order granting plaintiffs’ request for attorney fees pursuant to Civil Code section 1717.

The case presents for decision the interesting question of whether section 1717, subdivision (b)(2) precludes any award of attorney fees to the prevailing party when the parties sign a settlement agreement which provides that the action will be dismissed after certain actions have been taken.

We hold that a settlement agreement which provides that the trial court will determine the prevailing party in the action, and the amount of the attorney fee award, if any, is valid and enforceable.

Facts and Procedural History

Plaintiffs Addie P. Jackson, Wade Sargent, and Genevieve Sargent (plaintiffs), brought this action to challenge certain provisions of the conditions, covenants, and restrictions (CC&R’s) adopted by defendant homeowners association. Primarily, the action sought to invalidate a provision which purported to restrict home ownership in the subdivision to persons age 55 and older who live on the property.

The trial court found the CC&R’s enforceable, including the contested provision. Accordingly, it ordered that…