Kim v. Hayes Lemmerz Internat
Defendant Hayes Lemmerz International, Inc., (Hayes) appeals an order denying it attorney fees after successfully moving for judgment (Code Civ. Proc., 631.8) on the breach of contract and other claims asserted by plaintiff Jay Kim doing business as JB Enterprises, Inc., (JB). Hayes contends the trial court erred by applying Michigan law, which treats contractual attorney fees as an item of damages, and instead should have applied California law, which treats them as costs. Alternatively, Hayes argues the trial court should have awarded fees even under Michigan law.
Court conclude the trial court erred in denying attorney fees. Michigan law pertaining to contractual attorney fee provisions conflicts with a fundamental policy of California, embodied in Civil Code section 1717, to award attorney fees to the party prevailing on a contract containing an attorney fee clause, even if the clause does not provide for that party to recover fees. California has a materially greater interest in enforcing the equitable rules governing access to its own courts than Michigan does in having its law pertaining to attorney fees enforced by a foreign jurisdiction. Accordingly, Court reverse.
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