A recent case in the state of California dealt with a number of issues, including the effect of a liquidated damage clause. In this column, we’ll discuss the issue of whether the plaintiff who recovered the liquidated damage amount was entitled to attorney fees.
In the case at hand, the plaintiffs filed a lawsuit against an alarm company. The District Court granted summary judgment in favor of the defendant alarm company with respect to plaintiffs’ action for gross negligence, but awarded the plaintiffs $1,000 for the liquidated damage amount set forth in the contract. Despite the fact that plaintiffs were awarded judgment for the liquidated damage amount and were the prevailing parties and despite the fact that the contract between the parties contained a provision awarding attorneys’ fees to the prevailing party, the court refused to award attorneys’ fees in favor of the plaintiffs.