Stott v. Cervantes

Plaintiffs Stott contracted to purchase certain real property from defendants Cervantes. Paragraph 18 of the contract provided:

Attorney's Fees and Venue — In the event of any lawsuit between the parties to this contract to settle issues arising hereunder, the prevailing party shall recover judgment against the other party for a reasonable attorney's fee.

(Italics ours.) Believing there had been misrepresentations as to the condition of the real estate, plaintiffs sued defendants for either rescission or $10,000 damages. At trial the prayer for rescission was abandoned, but the court awarded…