Cap On Attorney’s Fees In Lease Is Enforceable

On September 15, 2015, the Appellate Division of the Los Angeles Superior Court ruled that a lease provision capping attorneys fees and costs is enforceable. The lease provision provided as follows: “In any legal action brought by either party to enforce the terms of this LEASE, the prevailing party shall be entitled to all costs, reasonably incurred in connection with that action, limited to no more than five hundred dollars ($500.00). In addition, the prevailing party is entitled to reasonable attorney fees, limited to no more than seven hundred fifty dollars ($750.00).” The tenant prevailed in an unlawful detainer action and sought an award of attorneys fees from the landlord in the amount of $12,375.00.  The trial court granted the tenant’s request. The landlord appealed.  The Appellate Division of the Superior Court reversed the trial court’s decision and held that the tenant could not recover more than $750.00 in attorney’s fees. (See, 511 S. Park View, Inc. v. Tsantis (2015) 240 Call.App.4th Supp. 44)

For further information, please contact Ruzicka, Wallace & Coughlin, LLP at (949) 748-3600; website: www.rwclegal.com. 

The law firm of Ruzicka, Wallace & Coughlin, LLP represents landlords, property management companies, institutional and private lenders, employers and insurance companies throughout the State of California in real estate, business and employment litigation. The information provided herein is for general interest only and should not be relied upon or construed as legal advice. 

© 2015 Ruzicka, Wallace & Coughlin, LLP.

October 13, 2015 | Landlord-Tenant Law |