Mediate Disputes Under Standard Residential Purchase Agreement!

    The California standard form residential purchase agreement provides that in most disputes the prevailing party may recover legal fees.  However, this right is subject to a condition. Paragraph 17A reads: “If, for any dispute . . . to which this paragraph applies, any party commences an action without first attempting to resolve the matter through mediation, or refuses to mediate after [the making of] a request . . . , then that party shall not be entitled to recover attorney’s fees . . . .”

   After a lawsuit is filed and the defendant prevails, the issue then becomes whether there has been refusal by defendant to mediate when attorney’s fees are sought. In Cullen v. Corwin the issue was whether defendants Corwin, who prevailed on summary judgment due to the running of the statute of limitations, were excused from the mediation requirement. Continue reading