Generally, the losing party isn’t liable to pay attorney fees in California or anywhere in the United States under “American Rule”. There are exceptions to this rule, but in general, each party is responsible for their own attorney and legal fees.
American Rule vs European Rule for Who Pays Legal Fees
When can parties recover attorneys’ fees incurred in prosecuting or defending against a lawsuit? The answer depends on the type of claims asserted. In general, the legal system in the United States follows what is known as the “American Rule,” which states that each party is responsible for their own legal fees incurred in prosecuting or defending against a case. In contrast, the “European Rule” allows the prevailing party in a lawsuit to recover attorneys’ fees from the other party.
Exceptions to American Rule
However, there are exceptions to the American Rule that enable parties to recover their attorneys’ fees. One such exception occurs when a contract signed by both parties specifically provides for prevailing party attorneys’ fees. This analysis depends on the precise language of the contract and the nature of the claims being asserted. Another exception applies when a claim is based on a statute that authorizes the recovery of attorneys’ fees.
How We Can Help You Recover Attorney Fees
Our attorneys are well-equipped to evaluate claims and determine whether you may be entitled to recover your attorneys’ fees from any party that has wronged you or your business. Contact us for a free consultation to learn if you may be entitled to recover your attorneys’ fees.