Penrod

Order Affirming Bankruptcy Court Fee Award

This is an appeal from a bankruptcy court order denying Appellant, and Debt- *142 or, Marlene Penrod’s motion to require a creditor to pay her attorneys’ fees. Ms. Penrod sought an award of attorneys’ fees from one of its creditors, Appellee Ameri-Credit Financial Services (“AmeriCredit”), after AmeriCredit unsuccessfully objected to her Chapter 13 reorganization plan that treated a portion of its claim as unsecured. The bankruptcy judge denied her fees request, finding that Ms. Penrod could not recover attorneys’ fees because she was not a party “prevailing on the contract” within the meaning of California Civil Code Section 1717. This appeal followed.

Having carefully considered the papers submitted, for the reasons set forth below, the Court finds that the bankruptcy judge did not abuse his discretion or err in failing to award attorneys’ fees and costs. 1 Because the litigation regarding the treatment of AmeriCredit’s claim was not an action “on a contract” within the meaning of California Civil Code section 1717, the prevailing party is not entitled to contractual attorneys’ fees. Therefore, the Court Affirms the decision of the…