Chelios v. Kaye

In Chelios v. Kaye (1990) 219 Cal.App.3d 75, the plaintiffs appealed an order denying postjudgment costs "consisting principally of postjudgment attorney's fees." (Id. at p. 77.) The plaintiffs argued they were entitled to attorney fees as costs in enforcing their judgment because the contract underlying the action contained a unilateral attorney fee provision, and Civil Code section 1717 makes such provisions reciprocal. (Chelios v. Kaye, supra, 219 Cal.App.3d at p. 78.) The appellate court found Civil Code section 1717 inapplicable, reasoning that attorney fees incurred in enforcing a judgment were not incurred in enforcing the terms of the contract. (219 Cal.App.3d at p. 79.) The court concluded that "when, as here, a lawsuit on a contractual claim has been reduced to a final, nonappealable judgment, all of the prior contractual rights are merged into and extinguished by the monetary judgment, and thereafter the prevailing party has only those rights as are set forth in the judgment itself. ." (Id. at p. 80.)