In Prentice v. North American Title Guaranty Corp. (1963) 59 Cal.2d 618, the court recognized an exception to the latter rule, where the attorney fees are incurred as a result of the tort of another. In Prentice, the plaintiffs contracted to sell their real property to the Hortons, and to subordinate the deed of trust they received to secure payment of the purchase price to a construction loan obtained by the Hortons from Blanche Neal. The defendant acted as escrow holder; it negligently closed the transaction after which the Hortons defaulted on their obligations. The plaintiffs obtained a decree quieting their title against the claims of the Hortons and Neal. The plaintiffs also obtained a judgment against the defendant on a cause of action for negligence; the plaintiffs recovered damages from the defendant in the amount of the attorney fees they incurred in the prosecution of their claims against the Hortons and Neal. The court identified an exception to the general rule that attorney fees are to be paid by the party employing the attorney: "A person who through the tort of another has been required to act in the protection of his interests by bringing or defending an action against a third person is entitled to recover compensation for the reasonably necessary loss of time, attorney's fees, and other expenditures thereby suffered or incurred. " (Id. at p. 620.) Because the defendant's wrongful conduct had made it necessary for the plaintiffs to sue the Hortons and Neal, the attorney fees plaintiffs incurred in doing so were "a natural and proximate consequence of defendant's negligence" and were recoverable as damages flowing from the tort. (Id. at p. 621.)