Yu v. Universal Waste Systems

Paragraph 31 of the Lease provides for attorney fees and states, in part: “If any Party or Broker brings an action or proceeding involving the Premises whether founded in tort, contract or equity, or to declare rights hereunder, the Prevailing Party (as hereafter defined) in any such proceeding, action, or appeal thereon, shall be entitled to reasonable attorneys' fees. Such fees may be awarded in the same suit or recovered in a separate suit, whether or not such action or proceeding is pursued to decision or judgment. The term, ‘Prevailing Party’ shall include, without limitation, a Party or Broker who substantially obtains or defeats the relief sought, as the case may be, whether by compromise, settlement, judgment, or abandonment by the other Party or Broker of its claim or defense.” (ROA 55, Ex. 1 to Declaration of Bonaparte Lui, Lease at p. 14, ¶ 31.)

The Guaranty signed by Defendant states: “In the event any action be brought by said Lessor [KSN Investments, Inc.] against Guarantors [Kaiser Shere] hereunder to enforce the obligation of Guarantors hereunder, the unsuccessful party in such action shall pay to the prevailing party therein a reasonable attorney's fee. The attorney's fee award shall not be computed in accordance with any court fee schedule, but shall be such as to full reimburse all attorney's fees reasonably incurred.” (ROA 55, Ex. 1 to Declaration of Bonaparte Lui, Guaranty.)

Plaintiff acquired the property located at 14601 Red Hill Avenue, Tustin California 92780 (the “Premises”), which is at the center of this dispute, and as part of the acquisition, assumed the written Lease executed on or about January 16, 2025 between KSN Investments, Inc. and Defendant. (ROA 55, Declaration of Bonaparte Lui, ¶¶ 3-4.)

A valid, written agreement existed between the parties for an award of attorney fees to the prevailing party for an action involving the Premises and to enforce the obligation of a Guarantor.

Entitlement to Attorney Fees