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BRIEF BYTES: Question and Answer
Forum
We are introducing
an online newsletter. The purpose is to answer frequently
asked or unusual questions. Topics will range from real estate,
business, litigation and trusts and estates. Your feedback
is appreciated. Direct your comments to Cherisse Roy at croy@scott-harris.com
Question: Will the prevailing party in a lawsuit always
be awarded attorney's fees?
Response from John Jorgensen,
Esq.:
In Great Britain, the English Rule provides that the prevailing
party in a lawsuit always gets attorney's fees. In this country,
under the American Rule, you are often not awarded attorney's
fees even if you are the successful party.
You
can be awarded attorney's fees in two ways. The first way
is by contract. If you have entered into a contract that has
an attorney's fees provisions, the prevailing party will be
awarded fees. The FAR/BAR contract has such a provision. In
order to be awarded and collect fees, a judgment must be entered
by a court. If the case is settled outside of court, chances
are, the parties will pay their own fees and costs.
The
second way of being awarded attorney's fees is by statute.
There are a number of Florida Statutes that provide for payment
of attorney's fees if there is a violation of the statute.
Some examples include enforcement of insurance contracts,
foreclosure of construction liens and various consumer statutes.
There is also an "offer of judgment" statute that
includes a mechanism for the payment of attorney's fees. In
order to encourage litigants to settle cases, the offer of
judgment statute provides that either a plaintiff or defendant
can make a formal offer of judgment during the pendency of
a case. For instance, if the defendant makes an offer of judgment
to the plaintiff for $50,000.00, which the plaintiff refuses
to accept, and if the case goes to trial, then the defendant
will be awarded attorney's fees if the plaintiff does not
obtain a judgment for more than 75%
($37,500.00) of the $50,000.00 offer of judgment. There are
similar rules that apply when a plaintiff makes an offer of
judgment. The offer of judgment statute is frequently used
in litigation and often pressures either the plaintiff or
defendant to settle the case.
Given
the cost of litigation, the issue of attorney's fees must
be addressed at the beginning of the case. Never take for
granted that you will be awarded attorney's fees if you are
victorious.
To Contact Us, call (561)
624-3900. Or fax
(561) 624-3533. To correspond online, please fill
out our contact form with your comments.
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