Exxess Electronixx v. Heger Realty Corp.

Good Law
1998 Cal. App. LEXIS 512·64 Cal. App. 4th 698·75 Cal. Rptr. 2d 376·98 Daily Journal DAR 5991·98 Cal. Daily Op. Serv. 4396
Court of Appeal of CaliforniaJune 8, 1998B108515California6,861 words

Opinion

Opinion

Masterson, J.

After entering into a standard commercial lease, the lessee discovered several defects in the premises that interfered with its use of the property to conduct business. The lessee sued its broker for declaratory relief, constructive fraud, breach of fiduciary duty, and equitable relief, alleging that the broker should have disclosed the defects before the lease was executed. Eventually, the action was settled and dismissed.

The broker then moved for attorneys’ fees pursuant to a provision in the lease which provided that “[i]f any Party or Broker brings an action or proceeding to enforce the terms hereof or declare rights hereunder, the Prevailing Party ... or Broker . . . shall be entitled to reasonable attor- ■ ney’s fees.” The trial court awarded fees to the broker. The lessee has appealed the award.

We conclude that Civil Code section 1717 precludes an award of attorneys’ fees on the contract claim (declaratory relief) and that the contractual attorneys’ fee provision does not authorize an award of fees on the tort claims (constructive fraud and breach of fiduciary duty) or the claims for equitable relief. Accordingly, we reverse.

Background

Masco Building…

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