California has adopted the “American rule,” which provides that in a legal action, each party generally must cover its own attorney’s fees—no matter who wins or loses. As a result, business litigation lawyers in OC often must inform their clients that, in some cases, the expense of pursuing a lawsuit may exceed the amount of damages that can be recovered, since attorney’s fees are often not recoverable.
Business Litigation Lawyers in OC Explain How to Recover Attorney’s Fees in a Lawsuit
California Code of Civil Procedure §1021 states: “Except as attorney’s fees are specifically provided for by statute, the measure and mode of compensation of attorneys and counselors at law is left to the agreement, express or implied, of the parties…”. This means that, as a general rule, the prevailing party in a lawsuit may recover his or her attorney’s fees when:
- there is a written contract that contains an attorney’s fees provision, or
- there is a special statute that allows the recovery of attorney’s fees.
Accordingly, your business litigation attorneys in OC will inform you that any written contract should contain an attorney’s fee provision (absent a state statute that provides for the recovery of fees).
Ultimately, the bottom line is that you can recover attorney’s fees after winning your lawsuit, so long as the contract provides for the recovery of such fees or there is a statute that specifically states that the prevailing party is entitled to recover attorney’s fees.
Contact Business Litigation Lawyers in OC
If you need more information about recovering attorney’s fees in a lawsuit, business litigation lawyers in OC Reed Aljian and Justin Daily can answer your questions. Call 949-861-2524 today to schedule an initial consultation.