
Attorney’s fees are a big part of any dispute.
Attorney’s fees are a big part of any dispute. And the attorney’s fees should be because fees are a factor and can ultimately drive the outcome of a dispute. No one wants to spend $100,000 in fees to recover $100,000, so the conversation regarding attorney’s fees needs to be had early.
Generally, a party can recover reasonable attorney’s fees if authorized by contract or by statute. So, there would need to be a prevailing party attorney’s fees provision in a contract, if suing on a contract, or there would need to be a statute authorizing the recovery of attorney’s fees, if suing on a statute. Then, there is authority that the party still needs to prevail on the significant issues in the dispute, as determined by the trial court (or binding arbitrator), in order to be the prevailing party for purposes of attorney’s fees. (Absent that, you are dealing with a proposal for settlement to create a procedural basis to recover fees, which is explained here.) Reasonable attorney’s fees, however, does not mean you will recover 100% of your attorney’s fees. Some percentage will presumably be discounted meaning becoming 100% whole when factoring in attorney’s fees is not always a practical outlook.
Mr. Adelstein may be contacted at dma@kirwinnorris.com