Raymond Reudy v. Clearchannel Outdoor, Inc.

FILED NOT FOR PUBLICATION APR 28 2011 MOLLY C. DWYER, CLERK UNITED STATES COURT OF APPEALS U .S. C O U R T OF APPE ALS FOR THE NINTH CIRCUIT RAYMOND REUDY; MARK KEVIN No. 10-15533 HICKS, dba Advertising Display Systems, D.C. No. 06-CV-05409-SC Plaintiffs - Appellants, MEMORANDUM * v. CBS CORPORATION, a Delaware corporation; PATRICK ROCHE, an individual, Defendants - Appellees, and CLEAR CHANNEL OUTDOOR, INC., a Delaware Corporation; WILLIAM HOOPER, an individual; DOES 1-50, Defendants. Appeal from the United States District Court for the Northern District of California Samuel Conti, Senior District Judge, Presiding * This disposition is not appropriate for publication and is not precedent except as provided by Ninth Circuit Rule 36-3. Argued and Submitted April 13, 2011 San Francisco, California Before: KOZINSKI, Chief Judge, N.R. SMITH, Circuit Judge, and BLOCK, District Judge.** 1. The plain language of the Purchase and Sale Agreement does not limit entitlement to attorney’s fees to those incurred in an independent action to enforce the agreement. See Thompson v. Miller, 4 Cal. Rptr. 3d 905, 913 (Ct. App. 2003). Because the fee provision allows either party to recover fees, section 1717 of the California Civil Code does not apply. See Associated Convalescent Enters. v. Carl Marks & Co., 108 Cal. Rptr. 782, 785 (Ct. App. 1973). 2. There is no support for appellants’ contention that the fee-shifting rule applicable to antitrust claims displaces the different rule set forth in the agreement. 3. With respect to Roche’s attorney’s fees, the parties agreed that a defaulting party would pay “any and all costs arising as a result of [its] default, including reasonable attorneys’ fees.” On its face, that provision is not limited to fees incurred by the contracting parties. In any event, Roche was a beneficiary of the agreement’s covenant not to sue, and appellants do not dispute that CBS ** The Honorable Frederic Block, Senior United States District Judge for the Eastern District of New York, sitting by designation. 2 incurred fees defending him. See Loduca v. Polyzos, 62 Cal. Rptr. 3d 780, 786 (Ct. App. 2007). AFFIRMED. 3