Sciarrotta v. Teaford Custom Remodeling, Inc

In Sciarrotta v. Teaford Custom Remodeling, Inc. (1980) 110 Cal. App. 3d 444, a building contract contained an attorney's fees provision that authorized an award of fees in the event that the owner defaulted on payment of the contract price and the contractor had to sue to enforce payment. The building was completed and the owner paid the full contract price. In other words, there was no default in the aspect of the contract providing for attorney's fees. The owner later sued the contractor, however, for breach of the contractual agreement to construct the building in a workmanlike manner. Plaintiff prevailed in the lawsuit, but the court refused to award attorney's fees. This was upheld on appeal, where the court found that the parties had intended to limit the application of the attorney's fees provision to a suit to enforce payment of the contract, and further found that Civil Code section 1717 could not impose an expanded application of the attorney's fees provision not anticipated by the parties.