attorney fees when case is reopened due to fraud

by Alexander Hand 7 min read

In a breach of contract case, or a case involving other claims common in business disputes, such as fraud or breach of fiduciary duty, attorney fees are not recoverable unless the parties have agreed otherwise in a binding contract. Contractual attorney fee provisions are recognized by California law.

Full Answer

Are attorney fees recoverable in breach of contract?

Apr 20, 2013 · Posted on Apr 20, 2013. To answer your question, you may have a right to attorney's fees by showing fraud. Penal Code section 496, prohibiting the receipt of stolen property, allows treble damages and fees to anyone injured by its violation. Since just about any fraud to obtain property constitutes larceny by false pretenses, the statute appears to give a …

What happens if there are no attorneys’ fees?

Jan 27, 2022 · In cases where there are no attorneys’ fees provided by law or contract each party must realize that the attorney fees they spend on the case will not be recoverable. For example, if you are a plaintiff seeking damages of $100,000 without an attorneys’ fees provision, then every dollar you spend on attorneys’ fees during the litigation ...

Can I Recover my Lawyer’s fees?

May 01, 2017 · Contractual Attorney Fee Provisions In a breach of contract case, or a case involving other claims common in business disputes, such as fraud or breach of fiduciary duty, attorney fees are not recoverable unless the parties have agreed otherwise in a binding contract. Contractual attorney fee provisions are recognized by California law.

Are Attorney’s fees considered damages in a lawsuit?

Aug 29, 2011 · The Computer Fraud and Abuse Act does not permit the recovery of costs and attorneys’ fees even if you win your case. If you are the plaintiff, however, it does permit you to recover your “loss.” If you plan it right, your “loss” could include some portion of your costs and attorneys’ fees as well. Some courts have allowed this and some have not.

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Can you recover attorneys fees for fraud in California?

The attorneys' fees law in California generally provides that unless the fees are provided for by statute or by contract they are not recoverable. In other words, unless a law or contract says otherwise the winning and losing party to lawsuit must pay their own attorneys fees.Jan 27, 2022

Can you sue for legal fees in New York?

As New York's courts have put it: "It is well settled that legal fees are not recoverable unless provided under the terms of a contract or authorized by statute." See, U.S. Underwriters Ins.

What is the American rule of law?

The American Rule is a rule in the U.S. justice system that says two opposing sides in a legal matter must pay their own attorney fees, regardless of who wins the case. The rationale of the rule is that a plaintiff should not be deterred from bringing a case to court for fear of prohibitive costs.

Why are attorneys' fees important?

Attorneys’ fees are important because they are generally the cost of participating in the lawsuit with the aid of a lawyer. Lawyers generally charge by the hour or agree to take the case on a contingency. For lawyers charging by the hour or via flat fees, the cost of the lawsuit is largely the attorneys’ fees.

Can you recover attorney fees without a contract?

In cases where there are no attorneys’ fees provided by law or contract each party must realize that the attorneys’ fees they spend on the case will not be recoverable. For example, if you are a plaintiff seeking damages of $100,000 without an attorneys’ fees provision, then every dollar you spend on attorneys’ fees during the litigation will affect your recovery. That said, sometimes investing additional money into your case will actually maximize your potential recovery because it will better your chances of prevailing. It is important to understand this and to understand that there is a lot involved in a lawsuit and the recovery you obtain is based, at least in part, on the facts, the law, the quality of representation, the time spent on the case and the trier of fact (judge or jury).

Can you recover attorney fees in California?

The law in California generally provides that unless attorneys’ fees are provided for by statute or by contract they are not recoverable. In other words, unless a law or contract says otherwise the winning and losing party to lawsuit must pay their own attorneys fees.

What is the default rule for California?

The general or default rule that applies to litigants in California is that each party to the lawsuit or arbitration pays his or her (or its) own attorney fees. This is known as the “American Rule” and differs from the “British Rule,” which says that the winner will be able to recover attorney fees. The rule that each party pays its own fees applies unless a statute being sued under provides for the recovery of attorney fees, or if the parties have agreed in a contract that fees will be recoverable.

Can court costs be recovered?

Court costs, which include filing fees, appearance fees, and other costs, typically involve far less money than attorney fees, but can nevertheless be substantial, particularly in larger cases. They can generally (but not always), be recover ed by the winning party.

Can attorney fees be recovered?

In a breach of contract case, or a case involving other claims common in business disputes, such as fraud or breach of fiduciary duty, attorney fees are not recoverable unless the parties have agreed otherwise in a binding contract .

How to recover attorney fees?

Where the fees are sought by a prevailing party as an incident to the lawsuit, they will be recoverable via a post-judgment motion to the Court. Where, however, the fees are sought as damages for breach of the contract, those damages will become part ...

Who owns Beats Electronics?

Dre and Iovine subsequently founded Beats Electronics (“Beats”), which entered into a new agreement with Monster superseding the 2008 agreement. The new agreement gave Beats the right to terminate its licensing agreement with Monster should a third party acquire more than 50% of Beats.

How much did Apple buy Beats?

Seven months after the parties executed the last of the above agreements, Apple acquired Beats for $3 billion. Yes, billion. Monster and Lee wanted a slice of that pie, so they sued Beats, alleging that Beats had engaged in fraudulent scheme to divest them of their business interests in the Beats by Dre line.

Who made Beats by Dre headphones?

Back in 2008, Monster, LLC (“Monster”) and its founder Noel Lee entered into a licensing agreement with music producer Jimmy Iovine and rapper Dr. Dre to manufacture and sell the duo’s “Beats By Dre”-branded headphones. Dre and Iovine subsequently founded Beats Electronics (“Beats”), which entered into a new agreement with Monster superseding the 2008 agreement. The new agreement gave Beats the right to terminate its licensing agreement with Monster should a third party acquire more than 50% of Beats. As part of this subsequent agreement, Lee was given 5% equity in Beats.

Can a prevailing party recover attorney fees?

These terms allow the prevailing party in any action to enforce the contract to recover its attorney’s fees. Under California Code of Civil Procedure section 1717, the prevailing party on these contract actions can simply file a motion and have the court award the fees as costs of suit. But what happens when a party sues for breach ...

What is the American rule in litigation?

The American Rule provides that each party to litigation pays for his or her own attorneys’ fees. There are, however, two exceptions to the American Rule that are often implicated in association litigation. First, attorneys’ fees are recoverable if a statute allows for their recovery.

Is an attorney's fee recoverable?

In all instances where attorneys’ fees are recoverable, the amount of fees to be recovered must be presented to the court as admissible evidence, whether in the form of an attorney affidavit or testimony at an evidentiary trial (as the court determines) for the court’s consideration of a number of factors.

Can attorneys' fees be recovered?

Second, attorneys fees can also be recoverable if the litigants are parties to a contract that contains a provision known as a “prevailing party provision” and the litigation involves a purported breach of the contract. This contractual provision typically states that any reasonable attorneys’ fees and costs that are incurred to enforce ...

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