Tri-City Medical-Surgical Park Ass'n v. Burch (In Re Vista Medical Investors, Ltd.)

JOHN J. HARGROVE, Bankruptcy Judge.

At issue is whether sublessees to a ground lease are in sufficient privity of contract with the original ground lessor to be entitled to an award of attorneys’ fees and costs from the ground lessor as prevailing parties in an action for declaratory judgment, or whether sublessees are entitled only to an award of fees from the sublessor.

Plaintiffs claim that the ground lease provides that the prevailing party is entitled to its reasonable costs and attorney’s fees should an attorney be engaged to bring suit concerning matters in the lease. Each condominium…