<Steve> 82 Report post Posted June 6, 2004 Hey Pinkerton- Long nap, hope your still around. Just a general question: In all the contacts I have used and seen there is alway a paragraph stating something like, "...if any legal action is brought the prevailing party shall recover reasonable attorney's fees..." Is this clause needed? In my state up to 15% is considered reasonable anyway. I have found this clause to come back and bit me. Just because the plaintiff files suit doesn't make them the prevailing party, to claim legal fees. Does it? Doesn't "Prevailing Party" mean the side that wins the case. The side that "Prevails." Suppose the plaintiff and defendant end up in a draw or an even split. If my definition of prevailing Party is correct, who is the Prevailing Party in this instance. <S> Share this post Link to post Share on other sites
Guest Guest Report post Posted June 7, 2004 Man I needed that nap.... OK, "attorney's fees" clauses in contracts. If the contract is silent on attorney's fees, then each side must pay their their own legal fees (unless state law provides otherwise.) A "prevailing party" fee clause is meant to discourage frivilous law suits...Someone is less likely to sue you on a bogus claim if they have to pay your defense costs. You're right, just who "prevails" can be open to interpretation. I've seen contract language that spells out just what that means in the context of the contract. So....I wouldn't be quick to conclude that they aren't useful, because they are. If you're having problems, think about what success would mean from your standpoint, and run that language past a local RE attorney. Mike P. The Legal Eagle Share this post Link to post Share on other sites
<Steve> 82 Report post Posted June 7, 2004 Thanks Legal Eagle & glad your still around. <S> Share this post Link to post Share on other sites
