California-American Water Co. v. Marina Coast Water Dist.

*574 This consolidated appeal challenges trial court orders requiring appellant Marina Coast Water District (Marina) to pay attorney fees incurred by respondents California-American Water Company (California-American) and Monterey County Water Resources Agency (Monterey) after respondents successfully argued that contracts between the parties were void. Marina argues that respondents are not entitled to fees under Civil Code section 1717 ( section 1717 ) because the underlying contracts that were the basis for the fees were declared void. We reject the argument and affirm.

I.

FACTUAL AND PROCEDURAL BACKGROUND

The factual and procedural background of this case was discussed at length in our decision in California-American Water Co. v. Marina Coast Water Dist. (2016) 2 Cal.App.5th 748 , 206 Cal.Rptr.3d 439 ( California-American I ), and we need recount only a portion of it for purposes of this appeal. California-American, a water utility, and Marina and Monterey, public water agencies, entered into several contracts to collaborate on a water desalination project.

*575 ( Id . at p. 751, 206 Cal.Rptr.3d 439 .) As part of their arrangement, the parties agreed that the prevailing…