Rodewald

MEMORANDUM **

Three Creeks Ranch South, L.L.C., and Reid Rosenthal, a third-party defendant, *721 appeal an award of attorney fees to Donald R. Rodewald and Denna J. Rodewald, which were incurred by the Rodewalds in the defense of, and in pursuit of counterclaims to, a civil action with its origins in a property sale gone bad. The district court awarded attorney fees to the Rodewalds pursuant to the parties’ purchase and sale agreement after finding that the Rodewalds were the “successful litigant” under Montana law. In Three Creeks’ appeal, Rosenthal challenges the district court’s denial of attorney fees to him for successfully defending the Rodewald’s third-party complaint. The Rodewalds cross-appeal the district court’s decision not to grant attorney fees that they incurred in responding to Three Creeks’ and Rosenthal’s objections to the magistrate judge’s findings and recommendations on attorney fees.

We review de novo whether the district court applied the correct legal standard in determining an award of attorney fees. Price v. Seydel, 961 F.2d 1470, 1475 (9th Cir.1992). If the district court applied the correct legal standard, we review the award or denial of attorney…