Navigating Legal Fees: When The Opposing Party Must Pay
We get it. Litigation is expensive, and often these expenses have to be incurred because the other party did not do the right thing. In general, the “American rule” is that litigants in civil cases cannot recover their legal fees from the other party. Fortunately, there are a few exceptions:
By statute. In some cases, legal fees are recoverable by statute. For example, the Ohio Consumer Sales Practices Act allows the court to award reasonable attorney’s fees to a consumer. Ohio’s Condominium and Planned Community laws shift payment of legal fees to homeowners who are not complying with the deed restrictions.
Contractual fee shifting provisions. Some contracts contain provisions that allow the prevailing party to recover legal fees in the event of a dispute. This is why it is always a good idea to have your legal counsel review any contract, to ensure that you are protected in the event of litigation (or that you are not subject to unfair fee shifting provisions).
Certain events during the course of litigation may impose sanctions, including payment of the other party’s reasonable attorney’s fees. If a party breaches the terms of a settlement agreement, fails to comply with certain court orders, or does not cooperate during the discovery process, the court can impose reasonable attorney’s fees incurred by the other side as sanctions.
Where there is a finding of fraud and punitive damages, the court may also award reasonable attorney’s fees to the prevailing party.
When a party acts in bad faith. This can include filing of frivolous claims, failing to cooperate during the discovery process, or other acts done with the intent to harass or delay the opposing party.
It is always a good idea to ask up front whether your attorney’s fees may be recoverable before engaging in any litigation.
To learn more about your situation and rights you can contact N.P. Weiss Law.
This blog was drafted by Rachel Kuhn, an experienced real estate attorney at N.P. Weiss Law. For more information about Rachel, you can visit her bio page.
This article is meant to be utilized as a general guideline. Nothing in this blog is intended to create an attorney-client relationship or to provide legal advice on which you should rely without talking to your own retained attorney first. If you have questions about your particular legal situation, you should contact a legal professional.