California Housing Finance Agency v. E.R. Fairway Associates I

E.R. Fairway Associates I et al. (collectively defendant) appeal from a postjudgment order awarding plaintiff California Housing Finance Agency (CHFA) attorney fees and costs totaling $243,808.68. In awarding attorney fees the trial court concluded: (1) CHFA was the prevailing party in the action for breach of contract (Civ. Code, § 1717); and (2) various agreements, some of which contain an attorney fee provision i.e., a promissory note and deed of trust, and some which do not i.e., a regulatory agreement and a management contract, are, properly construed, parts of substantially one transaction within the meaning of Civil Code section 1642 to be considered together, and thus an award of attorney fees is authorized under the attorney fee provisions in the note and deed of trust even though the agreements actually sued upon contain no provision for attorney fees.

On appeal, defendant contends the trial court erred in its interpretation and application to these facts of Civil Code section 1642. Defendant also contends the award of attorney fees is excessive. Finally, defendant contends the trial court erred in denying its motion to tax certain costs claimed by CHFA,…