California Civil Code

§ 1717.5

CIV § 1717.5 Effective Jan 1, 2026Div. 3 · Part 3

Statute text

(a)(1) Except as otherwise provided by law or where waived by the parties to an agreement, in any action on a contract based on a book account, as defined in Section 337a of the Code of Civil Procedure, entered into on or after January 1, 1987, which does not provide for attorney’s fees and costs, as provided in Section 1717, the party who is determined to be the party prevailing on the contract shall be entitled to reasonable attorney’s fees, as provided below, in addition to other costs. The prevailing party on the contract shall be the party who recovered a greater relief in the action on the contract. The court may determine that there is no party prevailing on the contract for purposes of this section.

(2)Reasonable attorney’s fees awarded pursuant to this section for the prevailing party bringing the action on the book account shall be fixed by the court in an amount that shall not exceed the lesser of: (1) one thousand two hundred dollars ($1,200) for book accounts based upon an obligation owing by a natural person for goods, moneys, or services which were primarily for personal, family, or household purposes; and one thousand six hundred dollars ($1,600) for all other book accounts to which this section applies; or (2) 25 percent of the principal obligation owing under the contract.

(3)For the party against whom the obligation on the book account was asserted in the action subject to this section, if that party is found to have no obligation owing on a book account, the court shall award that prevailing party reasonable attorney’s fees not to exceed one thousand two hundred dollars ($1,200) for book accounts based upon an obligation owing by a natural person for goods, moneys, or services which were primarily for personal, family, or household purposes, and one thousand six hundred dollars ($1,600) for all other book accounts to which this section applies. These attorney’s fees shall be an element of the costs of the suit.

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Legislative history

Amended by Stats. 2025, Ch. 28, Sec. 1. (AB 78) Effective January 1, 2026.