Vick

The Vicks purchased a single-family residence in Burbank from the DaCorsis. When the Vicks discovered the property contained nonpermitted and illegal improvements and alterations which Burbank required them to remedy they sued the DaCorsis for breach of contract and fraud. A nonsuit and jury verdict resulted in a judgment for the DaCorsis on all counts. The DaCorsis then sought to recover their expert witness fees on the ground the Vicks had rejected the DaCorsis’ offer of judgment under Code of Civil Procedure section 998 (998 offer). The trial court denied the fees on the ground the 998 offer was invalid.

We affirm the judgment for the DaCorsis as to the breach of contract cause of action and reverse as to the cause of action for negligent misrepresentation. In addition, because the issues may arise on retrial of the negligent misrepresentation cause of action, we explain why the trial court properly awarded attorney fees to the DaCorsis on their fraud-related causes of action and why it erred in striking the DaCorsis’ request for expert witness fees under Code of Civil Procedure section 998. We hold the language in the purchase agreement is broad enough to support an…