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In reversing an attorney fee award, the Washington Supreme Court held that a contractual provision awarding attorney fees to the prevailing party in a collection action did not extend to awarding attorney fees for successfully compelling arbitration.
In Belfor USA Group, Inc. v. Thiel, No 79691-2, 2007 WL 1704209 (Wash. June 14, 2007), the Thiels hired Belfor to do home repair. When Belfor sued to recover for nonpayment and the Thiels counterclaimed for defective workmanship, Belfor moved to compel arbitration pursuant to the contract. The trial court granted the motion. When the Thiels sought discretionary review, the court of appeals denied their request and awarded Belfor attorney fees. The Thiels appealed from the attorney fee award.
The Washington Supreme Court (the Court) granted discretionary review of the attorney fees award and held that Belfor was not entitled to recover attorney fees for prevailing in compelling arbitration. Under the contract, Belfor would be entitled to recover attorney fees only if it prevailed in its collection efforts. As the Court explained, Belfor had prevailed only in compelling arbitration, not in its collection efforts.
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