Attorneys' Fees - Issue 1

When judgment is recovered upon a written contract containing an agreement to pay an attorney fee, the court shall allow and tax as a part of the costs a reasonable attorney fee to be determined by the court. (I.C.A. § 625.22)

" EFCO Corp. v. Norman Highway Constructors, Inc., 606 N.W.2d 297, 301 (Iowa 2000) (affirming district court award of attorneys’ fees in lease enforcement action). Thus, if there is an express provision in the parties’ contract authorizing the payment or reimbursement of attorneys’ fees and litigation expenses, such fees will be allowed; however, the determination of the amount of the fees is normally a matter entrusted to the discretion of the court. Id. Attorneys’ fees are also awarded to the prevailing party for a successful appeal. Schaffer v. Frank Moyer Constr., Inc., 628 N.W.2d 11 (Iowa 2001). Iowa courts have held that attorneys’ fees may be awarded in the successful defense of a counterclaim. Federal Land Bank of Omaha v. Woods, 480 N.W.2d 61 (Iowa 1992).

Iowa courts have, however, held that attorneys’ fees incurred in securing or defending a secured party’s priority position against third-party claims were not allowable when the debtor’s promissory note merely allowed for the reimbursement of fees associated with “collection” efforts only. See Palo Savings Bank v. Sparrgrove, 796 N.W.2d 457 (Iowa Ct.App. 2004)."