Rapp v. Spring Valley Gold Co

In Rapp v. Spring Valley Gold Co. (1888) 74 Cal. 532, an action to foreclose a mechanic's lien, judgment was entered upon a stipulation that did not provide for attorney fees. The Supreme Court held an attorney fee was properly allowed "for the same reason that costs were allowed, viz., that it was a necessary incident of the judgment stipulated for, and was not expressly, or by necessary implication, excluded by the stipulation." (74 Cal. at p. 533.) The Court also rejected the claim that negotiations leading up to the stipulation showed the parties understood no attorney fees were to be allowed. ( Id. at pp. 534-535.) In Rapp, after an exchange of letters suggesting no attorney fees were to be allowed, the attorney for plaintiffs "distinctly informed attorney for defendant that he did not understand that attorneys' fees were cut off by the stipulation, and that he should press the matter before the court. This negatives the theory that the attorney for the plaintiffs allowed the defendants to proceed under the belief that attorneys' fees would not be claimed." ( Rapp v. Spring Valley Gold Co., supra, 74 Cal. at pp. 534-535.)