Can a party agree that the prevailing party will be awarded attorney fees incurred in any litigation between them?

California, United States of America


The following excerpt is from U.S. Grant Hotel Ventures, LLC v. Am. Prop. Mgmt. Corp., D066490 (Cal. App. 2016):

In contrast, under section 1021 "parties may validly agree that the prevailing party will be awarded attorney fees incurred in any litigation between themselves, whether such litigation sounds in tort or in contract." (Xuereb v. Marcus & Millichap, Inc. (1992) 3 Cal.App.4th 1338, 1341.) "If the attorney fee provision encompass[es] noncontractual claims, the prevailing party entitled to recover fees normally will be the party whose net recovery is greater, in the sense of most accomplishing its litigation objectives, whether or

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