Nevin v. Salk

In Nevin v. Salk (1975) 45 Cal. App. 3d 331, a case written prior to the amendment of section 1717(a), an agreement for the purchase of real property and a business incorporated promissory notes that formed part of the purchase price. The promissory notes contained attorney's fees provisions whereas the agreement of sale did not. The buyer defaulted and the seller commenced foreclosure. The buyer then sued the seller for fraud in connection with the sale agreement. The seller successfully defended the fraud action but was unsuccessful in his cross-action to recover the balance due on the unsecured promissory note. Nonetheless the trial court awarded him attorney's fees. Affirming this award, the Court of Appeal explained: "Inasmuch as the provisions of the notes and the security instruments were incorporated in the agreement, and made a part thereof . . . the trial court properly concluded all the instruments formed a single contract and the fact the agreement itself contained no provision for payment of fees in the event of a lawsuit is of no consequence." (Id. at p. 338.)