Attorney Fees: Getting the Other Side to Pay

In legal disputes, the general rule is that each party bears their own attorney fees. However, there are exceptions in malpractice cases, class action suits, and certain contractual or statutory circumstances where the losing party, typically the defendant, might be ordered to cover the winning party’s legal fees.

Are There Contract Exceptions?

Yes. Some contracts include a clause that specifies that if a party breaches the contract and a legal dispute arises, the losing party will pay the prevailing party’s attorney fees. This is common in business agreements to dissuade breaches and unwarranted lawsuits.

Are There Statutory Exceptions?

Indeed. Some statutes provide for the awarding of attorney fees to the prevailing party. For example, certain consumer protection laws or employment discrimination statutes mandate that the losing party pays the winning party’s legal fees, especially in class action suits where a significant monetary award is at stake.

Here are a few illustrative examples, especially in the realm of consumer protection and employment discrimination.

Fair Debt Collection Practices Act (FDCPA)

If a debt collector repeatedly harasses a consumer in violation of the FDCPA, and the consumer sues the debt collector and wins, the debt collector may be required to pay the consumer’s attorney’s fees.

Title VII of the Civil Rights Act of 1964

A woman working at a tech company believes she is being paid less than her male counterparts for doing the same job. She files a lawsuit claiming gender-based wage discrimination. If she prevails in her claim, the company may be required to pay her legal fees and any back wages she’s awarded.

Americans with Disabilities Act (ADA)

An individual who uses a wheelchair tries to access a public store but finds no wheelchair ramp. He sued the store for not making reasonable accommodations as per the ADA. If the court finds his favor, the store might have to pay his attorney’s fees.

Lemon Laws (vary by state but are designed to protect car buyers)

Someone purchases a new car, but it repeatedly breaks down even after multiple repairs. The buyer sues the manufacturer under their state’s Lemon Law. If the court rules that the car is a “lemon,” the manufacturer might be required to replace the car, refund the purchase, and pay the buyer’s legal fees.

Class Action Suits in Consumer Protection

A large number of consumers find that a specific model of a smartphone overheats and poses a burn risk. They collectively sued the manufacturer in a class-action lawsuit. If they win, the manufacturer might have to pay damages to the consumers and be ordered to cover the legal fees for the entire class, which can be substantial given the scope and complexity of class-action litigation.

These examples demonstrate how certain laws prioritize making the aggrieved party “whole” again, ensuring that the financial burden of pursuing justice doesn’t deter individuals or groups from standing up against violations.

Does This Apply to Family Law?

In family law, especially concerning divorce and custody battles, courts have the discretion to order one party to pay the other party’s attorney fees. This is usually based on a disparity in income or assets, ensuring both parties have equal legal representation.

Here’s an example illustrating when a court might order one party to pay the other party’s attorney fees in a family law context.

Example

Jane and John Doe have decided to divorce after 10 years of marriage. They share two children, and both are keen on obtaining primary custody.

Jane has been a stay-at-home mom for the entire marriage, caring for the children and the household. She has no immediate source of income and limited access to the couple’s joint assets because John has been the sole breadwinner and controls their finances.

On the other hand, John is a successful software engineer earning a substantial yearly salary. He hires a top-tier attorney to represent him in the divorce and custody proceedings, knowing that Jane cannot afford a lawyer of equal caliber given her financial situation.

Understanding her disadvantage, Jane petitions the court, asking that John be required to pay her attorney fees. She argues that without this support, she cannot afford adequate legal representation, which would jeopardize her chances of a fair custody and settlement outcome.

The court, recognizing the significant disparity in income and assets between Jane and John and the importance of both parties having equal representation, especially concerning the children’s best interests, may order John to cover a portion or all of Jane’s attorney fees. This ensures that Jane can secure competent legal counsel to represent her interests in the divorce and custody proceedings on an equal footing with John.

This example underscores the court’s aim in family law disputes: to level the playing field, ensuring that financial disparities don’t hinder a party’s access to justice or a fair resolution, especially when children’s well-being is at stake.

What About Punitive Damages?

Punitive damages are awarded to punish the defendant for particularly egregious behavior. While separate from attorney fees, in some malpractice cases or egregious breaches of duty, a judge might award punitive damages and order the defendant to pay the plaintiff’s legal fees.

An illustrative example highlights a scenario where punitive damages might be awarded.

Example

Dr. Smith is a well-known surgeon with a prestigious medical practice. Mr. Johnson approached Dr. Smith for a routine appendix removal surgery. However, instead of following standard procedures, Dr. Smith, who was intoxicated at the time of the surgery, negligently removed a portion of Mr. Johnson’s intestine, leading to severe complications, extended hospital stays, and significant pain and suffering.

Mr. Johnson sues Dr. Smith for medical malpractice. During the trial, evidence revealed not only was Dr. Smith intoxicated, but he also had a history of substance abuse on the job, which the hospital had overlooked due to his status and reputation. The hospital had received multiple internal reports about Dr. Smith’s behavior but failed to act.

The court determined that Dr. Smith’s behavior was beyond mere negligence—it was reckless and willful misconduct. Given the egregious nature of the offense and the hospital’s complicity, the court decided to send a strong message against such dangerous behavior.

In addition to awarding Mr. Johnson compensatory damages to cover his medical bills, pain, suffering, and other losses, the court also awards punitive damages against Dr. Smith and the hospital. These punitive damages serve a dual purpose: to punish Dr. Smith and the hospital for their reckless behavior and to deter other medical professionals and institutions from engaging in or overlooking such gross misconduct.

Moreover, recognizing the extensive legal fees Mr. Johnson had to shoulder to seek justice against a well-financed defendant and a major hospital, the court ordered Dr. Smith and the hospital to pay Mr. Johnson’s attorney fees.

This example underscores the primary intent behind punitive damages: to penalize egregiously wrong actions and serve as a deterrent against such behavior.

Should I Consult an Attorney?

Absolutely. An experienced attorney can guide you on the best course of action and potential fee arrangements if you’re navigating a legal dispute or drafting a contract. LegalMatch connects you with a lawyer suited to your specific needs. Ensure you’re well-represented and consult with a professional today.