Legal Question in Real Estate Law in California
Charging Legal Fees w/o Seeking Advice
As a business owner and a tenant (the lessee), we have a lease with a commercial landlord (the lessor). He seeked legal advice regarding our lease contract without first consulting with us his intention. He then sent us his legal bills for an X amount; basically he wanted us (the lessee) to pay for the whole amount of his legal fees in which he seeked without our notification. Can he legally collect legal fees he incurred from his attorneys (from us) without first consulting with us his intention of seeking legal advice? Thank you.
1 Answer from Attorneys
Re: Charging Legal Fees w/o Seeking Advice
Not usually, but I can think of a circumstance or two where that might be permissible.
First, if there had been a dispute between the landlord/owner and the tenants, and the landlord won the dispute (perhaps through arbitration, not necessarily in court), and the lease has an attorney fee clause allowing a prevailing party to obtain reimbursement, it could be proper. It would depend upon the circumstances and the terminology of the lease.
Another possibility is that the lease may contain clauses requiring reimbursement of the landlord for a wide variety of tenant-related costs. Such clauses are standard in triple-net leases and also crop up in single- and double-net leases. There may be, for example, an indemnity provision under which the tenant agrees to hold the landlord harmless from 'suits, costs, demands, etc.'
The lease may provide for reimbursement of legal fees in connection with legitimate questions about the legality of some tenant activity about which the landlord is challenged, such as tenant-caused pollution, a zoning violation, etc.
I suggest you get out your copy of your lease, read it carefully, and then ask the landlord to explain which provision allows him to seek reimbursement of his legal fees, and precisely why he is entitled to this reimbursement at this time and in this amount.
Chances are pretty good the demand is justified, but by all means demand an explanation.