Rainier National Bank v. Bodily

Opinion

NOTT, J.

—Merrill D. Bodily and Tawna Bodily appeal from a denial of their motion for attorney’s fees. We reverse with directions.

[85]

Facts

Respondent Rainier National Bank (Rainier) obtained a judgment in the State of Washington against the Bodilys on the basis that they were guarantors of a promissory note.

The Washington judgment was entered on May 12,1988, and provided for principal and interest in the amount of $63,866.42, plus “. . . attorney’s fees and costs to be determined pursuant to the terms of the personal guaranty executed by defendants. ...”

On July 29, 1988, the Washington court awarded Rainier $6,878.25 for attorney’s fees and costs, making a grand total due of $70,744.67. Rainier applied under Code of Civil Procedure section 1710.10 et seq. for that exact amount to be entered as a judgment in California, and also sought newly accrued interest and costs.

After Rainier domesticated the judgment in California in late 1989, the Bodilys moved to have it vacated. At the conclusion of an evidentiary hearing, the trial court found that the Bodilys did not sign the guaranty nor did the State of Washington have jurisdiction over them and thereby granted the motion to vacate on May 17, 1990.

On appeal, we affirmed the trial court in a decision filed on April 10, 1991. On June 21, 1990, the Bodilys filed a motion in the trial court for attorney’s fees, which was denied.

Issue

The sole question is whether the Bodilys are entitled to attorney’s fees under Civil Code section 1717.

Discussion

The trial court refused to award the Bodilys attorney’s fees, reasoning the action by Rainier was on a judgment, not on a contract, and was thus outside the provisions of Civil Code section 1717. We disagree.

Civil Code section 1717, subdivision (a) states in pertinent part: “In any action on a contract, where the contract specifically provides that attorney’s fees and costs, which are incurred to enforce that contract, shall be awarded either to one of the parties or to the prevailing party, then the party who is determined to be the party prevailing on the contract, whether he or she is