I discuss the law concerning the awarding of attorney’s fees to prevailing parties in litigation, some of the practical effects of allowing or not allowing an award of attorney’s fees, and the application of fee shifting provisions in certain commercial agreements. In this article, I explore considerations as to whether to include fee shifting provisions in various agreements.
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When served with a lawsuit that one thinks has no merit, or when forced to start one to protect one’s rights or recover property that is due them, one of the first questions that is asked is, “Am I entitled to recover my attorney’s fees if I win?”
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The awarding of legal fees is a sword that cuts both ways. Many clients, particularly those who believe that their adversary’s claim or defense is baseless, ask whether they will be entitled to recover attorney’s fees when they prevail in a lawsuit. After all, “why should I be out of pocket to collect what I am rightfully owed, or because someone wrongfully sued me?”
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