Opinion ID: 2514285
Heading Depth: 1
Heading Rank: 16

Heading: Prevailing Party in Suit to Enforce Rights Under the Contract

Text: [ś 104] In claiming that the district court improperly awarded HCI attorney fees, the City argues first that HCI was not entitled to the award because it did not prevail on the breach of contract claim. The City cites Article 13.8 of the contract which provided: In the event either party files suit to enforce their rights under the Contract Documents, the prevailing party in such suit shall be entitled to recover all costs of the suit, and any subsequent appeal of such suit, including reasonable attorney fees, from the other party, in addition to any other damages awarded by the court. Emphasizing the phrase to enforce their rights under the Contract Documents, the City contends the only basis for recovery of attorney fees under the contract was a suit for breach of the express provisions of the contract. Because the jury found that it did not breach the contract, the City argues that HCI was not entitled to attorney fees. [ś 105] To reiterate, every contract imposes upon the parties a duty of good faith and fair dealing in its performance and its enforcement. Scherer, ś 17, 18 P.3d at 652. Accordingly, parties to a commercial contract may bring a claim for breach of the implied covenant of good faith and fair dealing based upon a contract theory. Id. One of the rights a party may seek to enforce under the contract is the right to good faith performance by the other party. Under the contract at issue in this case, the prevailing party in a suit to enforce its rights was entitled to attorney fees. Upon prevailing on its claim that the City breached the covenant implied in the contract in its suit to enforce its rights to good faith and fair dealing, HCI was entitled to recover reasonable attorney fees. We hold that the district court properly awarded HCI attorney fees after it prevailed on its breach of the implied covenant claim.