(1) Except as provided in subsection (2), whenever, by virtue of the provisions of
any contract or obligation in the nature of a contract made and entered into at any
time after July 1, 1971, one party to the contract or obligation has an express right
to recover attorney fees from any other party to the contract or obligation in the
event the party having that right brings an action upon the contract or obligation,
then in any action on the contract or obligation all parties to the contract or obligation
are considered to have the same right to recover attorney fees and the prevailing
party in any action, whether by virtue of the express contractual right or by virtue
of this section, is entitled to recover reasonable attorney fees from the losing party
(2) For a contract or obligation negotiated between a private party and a party with
condemnation authority over the private party's property, the party with condemnation
authority is not entitled to recover attorney fees from the losing party or parties
pursuant to subsection (1) in an action to enforce a contract or obligation involving
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