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Imaging Sys. Int'l Inc. v. Magnetic Resonance Plus Inc.

Plaintiff could not recover attorneys' fees in breach of contract suit under the contract's "prevailing party" fee provision, since it recovered no damages even though the trial court found that defendant breached the contract.

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Imaging Systems International, Inc. and North Georgia Diagnostic Imaging, L.P. collectively, “ISI” appeal an award of $32,002 in attorney fees to Magnetic Resonance Plus, Inc. “MRP”. MRP had agreed to service and repair magnetic resonance imaging equipment for ISI under the terms of a service contract. After ISI terminated the service contract without giving MRP the required 30 days notice and opportunity to remedy any material default, MRP sued ISI for breach of contract. The trial court awarded MRP $21,584.37 in damages for lost profits and $32,002 in attorney fees. The attorney fees were awarded pursuant to a service contract provision that, “In the event any proceeding or lawsuit is brought by MRP or ISI in connection with the Agreement, the prevailing party in such proceeding shall be entitled to receive its . . . reasonable attorney’s fees.”

On appeal this court vacated the awards to MRP for lost profits and attorney fees.1 In the appeal, the parties did not address whether an award of attorney fees under the service contract was proper in the absence of an award of damages for lost profits. We remanded the action, stating that “the trial court should consider whether, in light of the holdings of this opinion, MRP is entitled to attorney fees under the contract.”2

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