Jones v. Drain

In Jones v. Drain (1983) 149 Cal. App. 3d 484, defendants received attorney's fees as a prevailing party who successfully defended against contract claims, even though those claims were dismissed prior to trial. The lower court granted a summary judgment in defendants favor on the breach of contract and declaratory relief causes of action while the tort claims went to trial. The court of appeal held defendants were entitled to an award of attorney's fees based on their successful defense of contract claims on summary judgment; the court found fees were proper even though the contract claims were dismissed prior to the final disposition of the case at trial. In Jones v. Drain, the trial court found, as a matter of law, no contract existed and it denied the defendants request for attorney fees. Defendants appealed. Reversing, the appellate court held: "The courts have consistently held that the award of Civil Code section 1717 contractual attorney's fees is to be governed by equitable principles. We believe that it is extraordinarily inequitable to deny a party who successfully defends an action on a contract, which claims attorney's fees, the right to recover its attorney's fees and costs simply because the party initiating the case has filed a frivolous lawsuit. As a consequence, we find that a prevailing defendant sued for breach of contract containing an attorney's fees provision and having had to defend the contract cause of action is entitled to recover its own attorney's fees and costs therefor, even though the trial court finds no contract existed." ( Id. at pp. 489-490.)