Yuba Cypress Housing Partners, Ltd. v. Area Developers

Upon learning that Area Developers (defendant) had violated the Subdivided Lands Act (Bus. & Prof. Code, § 11000 et seq.), James R. Smith (plaintiff) sought to rescind his real estate contract with defendant and to recover moneys he had paid to defendant on the contract. After losing in the trial court, plaintiff prevailed on appeal. The judgment against plaintiff was reversed, and the case was remanded to the trial court with directions to calculate the reimbursement to which plaintiff was entitled and to enter judgment in his favor. (Yuba Cypress Housing Partners, Ltd. v. Area Developers (May 28, 1998, C024819) [nonpub. opn.].)

On remand, plaintiff moved for an award of attorney fees and costs pursuant to an attorney fee clause in the real estate contract. (Civ. Code, § 1717.) As the prevailing party, he sought to recover the fees and costs he incurred at trial and on appeal.

Defendant opposed the request and moved to tax fees and costs. Among other things, defendant argued that (1) having obtained rescission of the contract on the ground that it violated the Subdivided Lands Act, plaintiff could not rely on the attorney fee clause because the entire contract was void…