Rideau v. Stewart Title of California
Annotate this CasePlaintiffs-appellants Earl and Marina Rideau entered into an agreement with condominium developer, Inmobiliaria BGJB de Mexico, S. de R.L. de C.V. (BGJB; not a party to this appeal), to purchase a unit to be constructed in Mexico. The Rideaus deposited funds toward the purchase price with an escrow company, defendant-respondent Stewart Title of California. In the "Sale Escrow Instructions," Stewart Title agreed to receive funds from the Rideaus, to be released at the seller's direction to a fund control company, as specified in the Instructions. The project failed and the Rideaus lost their deposit. In the Rideaus' prior appeal, the Court of Appeal reversed a defense judgment on the basis that the trial court erred in denying their contract claim that Stewart Title had breached the Instructions, when it released their $239,700 deposited funds to entities other than the one specified in the Instructions. On remand, the trial court entered judgment in their favor. This appeal arose from the trial court's denial of the Rideaus' motion for an award of contractual attorney fees and costs, based upon "hold harmless" language found in section IV of the Instructions, "Release of Funds," regarding defense of claims arising from the Instructions. The Rideaus argued a portion of that language should be interpreted as a reciprocal attorney fees clause, and not as an item of recovery specified in an indemnity agreement. After review, the Court of Appeal concluded that the trial court correctly denied the motion and affirmed the order and judgment.
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