Mountain Air Enterprises, LLC v. Sundowner Towers, LLC
Cal.Sup.Ct.; S223536 The California Supreme Court affirmed a court of appeal judgment. The court held that the assertion of an affirmative defense did…
July 31, 2017 at 05:21 PM
3 minute read
Cal.Sup.Ct.;
S223536
The California Supreme Court affirmed a court of appeal judgment. The court held that the assertion of an affirmative defense did not constitute an “action” for purposes of an attorney fee provision, but that defendants were nonetheless entitled to attorney fees as prevailing parties on the action brought by plaintiffs.
In a complex real estate purchase transaction, seller Mountain Air Enterprises, LLC brought a breach of contract action against buyers Sundowner Towers, LLC and others for failing to purchase the subject property. The defendant buyers asserted an affirmative defense of novation, arguing they were not liable under the purchase agreement because it had been superseded by the parties' option agreement, which agreement granted them the exclusive right, but not the obligation, to purchase the property. The trial court agreed and rendered judgment in defendants' favor, but denied their motion for attorney fees.
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