Attorney Fees Clauses in California Leases
Under California Civil Code § 1717, an attorney fees clause in a lease works both ways. If the lease says fees go to the landlord, or to "the prevailing party," whichever side prevails on the contract is entitled to reasonable attorney's fees, fixed by the court. A lease provision waiving attorney's fees is void, and when a case is voluntarily dismissed or dismissed under a settlement, § 1717 says there is no prevailing party.
The short version
- A one-way clause becomes two-way: the party who prevails on the contract gets fees "whether he or she is the party specified in the contract or not" (§ 1717(a)).
- The clause applies to the entire lease, unless each party was represented by counsel and the lease says otherwise (§ 1717(a)).
- The court fixes reasonable fees and decides who prevailed: the party who "recovered a greater relief" on the contract. It may find no prevailing party (§ 1717(a), (b)(1)).
- A voluntary dismissal or a settlement means no prevailing party under § 1717 (§ 1717(b)(2)).
- Several landlord-tenant statutes shift fees without any clause, including retaliation (§ 1942.5(i)) and lockouts or utility shutoffs (§ 789.3(d)).
- Small claims limits are $12,500 for a natural person and $6,250 for other plaintiffs (CCP §§ 116.221, 116.220(a)(1)).
How § 1717 reads a fee clause
Section 1717(a) applies when a contract says fees to enforce it "shall be awarded either to one of the parties or to the prevailing party." In that case, "the party who is determined to be the party prevailing on the contract, whether he or she is the party specified in the contract or not, shall be entitled to reasonable attorney's fees in addition to other costs." Four more points from the same section shape how a lease clause works in practice:
- Scope. The fee provision applies to the entire contract, unless each party was represented by counsel and the contract says so.
- Amount. "Reasonable attorney's fees shall be fixed by the court." The clause does not set the number.
- No waiver. Fees under the section "shall not be subject to waiver," and "Any provision in any such contract which provides for a waiver of attorney's fees is void."
- Who prevails. The court decides on motion, "whether or not the suit proceeds to final judgment." The prevailing party is the one who recovered a greater relief in the action on the contract, and the court may decide no one prevailed. Under § 1717(b)(2), a voluntary dismissal or a dismissal under a settlement leaves no prevailing party.
The practical result for an owner: adding a fee clause raises the stakes for both sides of any lease dispute, not just the tenant's.
What the clause should cover
| Item | What to include | Why |
|---|---|---|
| Whether to include one | A deliberate choice, made knowing the clause runs both ways | § 1717(a) makes any fee clause reciprocal |
| Wording | Fees and costs to the prevailing party in an action on the lease | Matches how § 1717 will read it anyway |
| Amount | "Reasonable" fees, without a fixed dollar figure | The court fixes reasonable fees |
| Scope | The whole lease | § 1717(a) applies it to the entire contract unless both sides had counsel and the lease says otherwise |
| Settlement terms | A reminder that any settlement should say how fees are handled | A settled or voluntarily dismissed case has no prevailing party under § 1717(b)(2) |
| No waivers | Nothing asking either side to give up fees | A fee waiver is void under § 1717(a) |
Fee rules that apply without a clause
Some statutes award fees on their own terms, whatever the lease says:
| Statute | Situation | Fee rule |
|---|---|---|
| Civil Code § 1942.5(i) | Retaliation claims | Fees to the prevailing party, if either party asks for them when the action begins |
| Civil Code § 1942.4(b) | Rent demanded on a unit cited as substandard and left unrepaired | The prevailing party recovers reasonable fees and costs |
| Civil Code § 789.3(d) | Lockouts, utility shutoffs, removing doors or belongings to force a tenant out | The court "shall" award reasonable fees to the prevailing party |
| Civil Code § 1940.35 | Disclosing a tenant's immigration status to harass or force a move | The prevailing party gets fees and costs |
| Civil Code § 1946.2(h) | Material violations of the just-cause statute | Attorney's fees at the court's discretion |
| Civil Code § 1947.12(k) | Rent increases above the cap | Attorney's fees at the court's discretion |
See retaliation, harassment and lockouts and habitability and repairs for the underlying rules.
Small claims and fee clauses
Small claims jurisdiction extends to $12,500 for an action brought by a natural person (CCP § 116.221) and to $6,250 for other plaintiffs such as corporations and LLCs (CCP § 116.220(a)(1)), both as amended effective January 1, 2024. No one may file more than two small claims actions over $2,500 anywhere in California in a calendar year (CCP § 116.231). A deposit claim under Civil Code § 1950.5 "may be maintained in small claims court" if the damages claimed are within those limits (§ 1950.5(o)); see security deposits. Claims under §§ 1942.4 and 1940.2 may also be brought there.
This page does not cover the rules on who may represent a party in small claims, or how a lease fee clause plays out in a small claims case. Check with the court or a California attorney before relying on a fee clause in that setting.
Clause mistakes to avoid
- Assuming a "tenant pays the landlord's fees" clause protects only the landlord. Section 1717 makes it reciprocal.
- Including a waiver of attorney's fees. It is void under § 1717(a).
- Writing in a fixed fee amount. The court fixes reasonable fees.
- Charging the tenant a fee for serving, posting or delivering a termination notice or a three-day notice. Civil Code § 1946.1(i) and CCP § 1161(6) bar those fees.
- Including language that waives the tenant's procedural rights in litigation or the right to a notice or hearing required by law. Those waivers are void under Civil Code § 1953(a). See lease clauses that are void.
- Settling a case without addressing fees, then expecting to recover them as the prevailing party.
For owners
Decide whether you want the clause at all. It can help you recover costs after a dispute you win, and it can cost you if the tenant prevails on the contract. Several fee rules apply whether or not the lease has a clause, so do not count on its absence to limit exposure. Before an eviction or a lawsuit, read the eviction process page and talk to counsel.
For renters
If your lease has a fee clause for the landlord, § 1717 lets you recover reasonable fees too if you prevail on the contract. Some statutes, such as the retaliation and lockout rules, provide for fees whether or not your lease mentions them. If you settle a dispute, make sure the written settlement says how fees are handled.
Local rules
Some cities add rules on top of state law, such as local just-cause, relocation or rental registration rules; check your city's code. Coronado has no local rent-control or just-cause ordinance as of October 2026 (based on a review of its code's contents).
Frequently asked questions
Is a one-way attorney fees clause valid in a California lease?
It is enforced as a two-way clause. Under Civil Code § 1717(a), when a contract awards fees to one party or to the prevailing party, whichever party prevails on the contract is entitled to reasonable fees, "whether he or she is the party specified in the contract or not."
Who is the prevailing party under § 1717?
The court decides on motion, whether or not the case reaches final judgment. The prevailing party is the one who recovered a greater relief in the action on the contract, and the court may find there is no prevailing party (§ 1717(b)(1)).
Does settling a case mean no one gets attorney's fees?
Under § 1717(b)(2), when an action has been voluntarily dismissed or dismissed under a settlement, there is no prevailing party for purposes of that section. Write any agreement on fees into the settlement itself.
Can a lease waive attorney's fees?
No. Section 1717(a) says attorney's fees under the section are not subject to waiver, and any contract provision waiving them is void.
Can a tenant get attorney's fees if the lease has no fee clause?
Sometimes. Some statutes provide for fees on their own, such as § 1942.5(i) for retaliation claims (if requested at the start), § 789.3(d) for lockouts and utility shutoffs, and § 1942.4(b) for rent demanded on cited substandard units. Others leave fees to the court's discretion, such as § 1946.2(h) and § 1947.12.
McKee Properties manages rentals from its Coronado office; contact us with questions about your property.
This is general information, not legal advice. Laws change; confirm the current text and your situation with a California attorney.
Sources
- Civil Code § 1717 (opens in a new tab)
- Civil Code § 1942.5 (opens in a new tab)
- Civil Code § 1942.4 (opens in a new tab)
- Civil Code § 789.3 (opens in a new tab)
- Civil Code § 1940.35 (opens in a new tab)
- Civil Code § 1946.2 (opens in a new tab)
- Civil Code § 1947.12 (opens in a new tab)
- Civil Code § 1953 (opens in a new tab)
- Civil Code § 1946.1 (opens in a new tab)
- Code of Civil Procedure § 1161 (opens in a new tab)
- Code of Civil Procedure § 116.220 (opens in a new tab)
- Code of Civil Procedure § 116.221 (opens in a new tab)
- Civil Code § 1950.5 (opens in a new tab)
Verified October 19, 2026.
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