Holdover Subtenant Gets Attorney's Fees for Dismissed Eviction Case

June 30, 2007

Facts: A subtenant remained in the space after its sublease had expired. The owner filed an eviction proceeding against the subtenant, based on a holdover claim, but later voluntarily dismissed the case. The sublease contained a clause that provided for attorney's fees to be awarded to the prevailing party in any action based on the sublease. The subtenant sued to recover attorney's fees, but the trial court denied the request. The subtenant appealed.

Facts: A subtenant remained in the space after its sublease had expired. The owner filed an eviction proceeding against the subtenant, based on a holdover claim, but later voluntarily dismissed the case. The sublease contained a clause that provided for attorney's fees to be awarded to the prevailing party in any action based on the sublease. The subtenant sued to recover attorney's fees, but the trial court denied the request. The subtenant appealed.

Decision: A California appeals court reversed the denial of attorney's fees and returned the case to the trial court for further proceedings.

Reasoning: The court found that the owner's eviction proceeding was not based on the sublease, but the sublease's attorney's fees clause was broad enough to encompass such a claim. The court ruled that even though the attorney's fees were sought pursuant to the sublease, the unlawful eviction was not based on the sublease. A further trial was needed to determine the amount of the attorney's fees that could be awarded.

  • Drybread v. Chipain Chiropractic Corp.: C053568, 2007 Cal. App. LEXIS 934 (Cal. Ct. App. 3d App. Dist. 6/6/07).

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