Leach v. Home Savings & Loan Assn

In Leach v. Home Savings & Loan Assn. (1986) 185 Cal. App. 3d 1295, a nonsignatory plaintiff sought to void promissory notes and deeds of trust executed by a trustee of a trust, allegedly without authority to do so. The lending institution prevailed and sought an award of attorney fees under the attorney fee provision in the promissory notes. The trial court refused to award fees and the appellate court affirmed. The court reasoned the plaintiff had not signed the notes or trust deeds, and as only a beneficiary of the trust, she could not be liable for the trustee's acts. On these facts the Leach court found the plaintiff had no contractual or statutory right to receive fees had she prevailed. Thus because of the lack of reciprocal rights, the lenders were similarly not entitled to their fees. (Leach v. Home Savings & Loan Assn. (1986) 185 Cal. App. 3d 1295.)