Ritzenthaler

Defendant Fireside Thrift Co. (Fireside) appeals from an award of attorney fees in favor of plaintiffs Charles and Lisa Ritzenthaler, contending the Ritzenthalers waived their right to recover attorney fees when they accepted Fireside’s offer to compromise under Code of Civil Procedure section 998 (hereafter section 998). We agree with the trial court that the section 998 compromise agreement did not include a waiver of attorney fees. Accordingly, we shall affirm the judgment.

Factual and Procedural History

The Ritzenthalers sued Fireside for breach of implied covenant of good faith and fair dealing and for engaging in unfair business practices after Fireside, which had financed the Ritzenthalers’ purchase of a used car, repossessed the vehicle. The Ritzenthalers alleged that after repossessing the car, Fireside sold it for $151, substantially less than its fair market value, then obtained a deficiency judgment against them for $2,580. The Ritzenthalers claimed Fireside did not conduct the sale in good faith or in a commercially reasonable manner and therefore breached the implied covenant of good faith and fair dealing and engaged in unfair business practices. The…