when can you sue for attorney fees in pennsylvania

by Della Zulauf III 3 min read

However, even in circumstances where a contractual or statutory attorneys’ fees provision does not apply, in Pennsylvania, courts are permitted to order litigants to pay attorneys’ fees who, during the course of litigation, engage in particularly egregious conduct that has a significantly negative effect on other parties, or the proceedings as a whole 2 (i.e. intentional delay of the proceedings, failing to comply with court orders, frivolous pleadings or argument etc.).

The Pennsylvania Trademark Act (54 Pa. C.S. §1125), under which the court may award attorney's fees to the prevailing party in a trademark infringement case when it finds that the other party committed wrongful acts with knowledge or in bad faith.Jul 5, 2016

Full Answer

Do you have to pay attorney's fees in Pennsylvania?

 · If you are litigating over a contract that says something to the effect that you may recover your attorneys' fees if you bring a lawsuit to enforce the contract or if you prevail in a lawsuit over the contract, then you may assert a claim for attorneys' fees. Additionally or alternatively, if you are suing to enforce rights that are... Helpful

When to file a petition for reimbursement of attorney fees?

 · 42 Pa C.S.A. §2503 (9).1 Thus, if a successful party in litigation can prove that the party initiating the action acted arbitrarily, vexatiously or in bad faith, he can file a petition seeking reimbursement of his attorney's fees.

Can I recover attorney's fees for unfair trade practices in Pennsylvania?

However, even in circumstances where a contractual or statutory attorneys’ fees provision does not apply, in Pennsylvania, courts are permitted to order litigants to pay attorneys’ fees who, …

When do you have to pay attorneys fees in a contract?

 · Posted on Jul 28, 2014. Posted on Jul 28, 2014. The court can award counsel fees, costs and expenses to a party if the court finds that the conduct of another party was obdurate, …

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Can you sue for legal fees in Pennsylvania?

Generally, in Pennsylvania attorneys' fees are only recoverable in a successful lawsuit if provided for by contract or statute. This is known as the “American Rule.” Unless stated otherwise in a contract, each party to a lawsuit pays its own attorneys' fees.

Does Pennsylvania follow the American rule?

The so-called “American Rule,” which is also the Pennsylvania rule, is that in the absence of a statutory or contractual provision to the contrary, each party to a lawsuit pays his own legal fees.

Can a lawyer over reach his fees?

“Where an attorney and his fees are concerned, the word “overreach” may be taken as conveying the extraction by the attorney from his client, by the taking by the former of undue advantage in any form of the latter, of a fee which is unconscionable, excessive or extortionate, and in so overreaching his client that ...

What is the Dragonetti Act?

The Dragonetti Act was passed in 1980 by the Pennsylvania legislature. It is a law that is specifically designed to allow those who have been named as defendants in civil actions to sue those that have pursued them if they believe that the actions were a wrongful use of civil proceedings.

Who pays court costs in civil cases?

Court Costs are generally paid by the losing party at the conclusion of the case.

What are non litigious matters?

Non-Litigious matters - for non-litigious matters (a case that does not reach court), the fees will be as agreed with your attorney, and are usually based on a hourly fee basis (or part thereof) which fee will be disclosed to you before the attorney commences work.

What are punitive costs?

[12] The consideration behind punitive costs is to punish a litigant who is in the wrong due to the manner in which he or she approached litigation or to deter would be inflexible and unreasonable litigants from engaging in such inappropriate conduct in the future.

Why do attorneys need clients to agree to their fees before representing them?

Reasons To Have a Written Representation Agreement The simple reason to have a written agreement with your attorney is to hold everyone accountable. Most disputes between lawyers and their clients are about money, whether it is how much the attorney is owed or how much the client is owed as a refund.

What is the right of way in Pennsylvania?

C.S. 3321(b)), Pennsylvania law essentially states that the driver to the right has the right of way when both approach the intersection at the same time. In other words, you must yield (give up) the right of way to that driver by letting him go first.

Can you pass on the right in Pennsylvania?

Passing On The Right Under certain conditions, you may pass another vehicle on the right: When the driver you are passing is making or signaling a left turn, the driver of the passing vehicle must stay on the berm or shoulder.

What did the Pennsylvania Supreme Court find about the case of Gazey?

In a decision that drew a strong dissent from one of the Justices, the Pennsylvania Supreme Court found that Thunberg's action had been initiated "arbitrarily" and that Gazey's estate was entitled to recovery of attorney's fees from Strause.

What is bad faith in court?

"Bad faith" has been interpreted to mean only fraud, dishonesty, or corruption. ...

Can you recover attorney fees if you are a successful party in a lawsuit?

Thus, if a successful party in litigation can prove that the party initiating the action acted arbitrarily, vexatiously or in bad faith, he can file a petition seeking reimbursement of his attorney's fees. However, until recently, the courts have narrowly interpreted this language making it difficult to recover attorney's fees.

Can a successful party be reimbursed for attorney fees in Pennsylvania?

In Pennsylvania, a successful party is not entitled to be reimbursed for its counsel fees by the losing party unless the right to such an award of fees is expressly provided by statute or an agreement of the parties. This rule is generally known as the American Rule to distinguish it from the English practice which provides for recovery ...

Is the Attorney's Statute a handier weapon?

Thus, the Court has made the Attorney's Statute a handier weapon for battling frivolous claims and we look forward to using it as such in future cases.

When a state or federal statute under which a claim is asserted specifically permits an award of attorneys' fees

In the case of a contractual provision for an award of attorneys’ fees, courts will generally defer to the terms of the contract under the presumption that the contract was read, understood, and agreed to by all parties involved.

What is the American rule in litigation?

Whether you initiate litigation or find yourself defending a lawsuit, the “American Rule” in litigation is that each party is responsible for paying their own attorneys’ fees throughout the lifespan of a case. In fact, there are generally only two instances when the losing party in litigation lawfully bears the attorneys’ fees ...

Does the UTPCPL provide for reasonable attorneys fees?

Not only does the UTPCPL provide for an award of reasonable attorneys’ fees, but it also permits the court in its discretion to award treble damages (triple a party’s claimed damages).

Can a court order an attorney's fee in Pennsylvania?

However, even in circumstances where a contractual or statutory attorneys’ fees provision does not apply, in Pennsylvania, courts are permitted to order litigants to pay attorneys’ fees who, during the course of litigation, engage in particularly egregious conduct that has a significantly negative effect on other parties, or the proceedings as a whole 2 (i.e. intentional delay of the proceedings, failing to comply with court orders, frivolous pleadings or argument etc.). In our experience, although courts will generally reduce claims of actual attorneys’ fees incurred to a more reasonable figure, courts will not hesitate to sanction a litigant’s conduct when it is so egregious that it unacceptably and unjustifiably wastes the time and resources of the court and other litigants.

Julie Rebecca Colton

Discuss this with your attorney. He/she will know what the likelihood is of you receiving counsel fees under the circumstances.

Kathryn L. Hilbush

I agree with other counsel but I wouldn't wait for the hearing. You should answer her latest complaint and then counterclaim for attorney fees. I would consult with a local attorney .

Michelle A. Winter

The court can award counsel fees, costs and expenses to a party if the court finds that the conduct of another party was obdurate, vexatious, repetitive or in bad faith. So yes, you can file a claim for counsel fees.

What is the fee shifting statute in Pennsylvania?

In Pennsylvania, the most widely available fee-shifting statute is set forth in the Pennsylvania Judicial Code at 42 Pa.C.S.A. §2503 (9), which provides that a party may be awarded counsel fees when the conduct of another party in commencing a case or “otherwise” was “arbitrary, vexatious or in bad faith” — i.e., frivolous.

What statutes allow for attorneys fees?

Most statutes which allow for attorneys’ fees were enacted not with the idea of helping business or discouraging frivolous litigation, but with the idea of helping aggrieved individuals pay for their day in court against business or corporate defendants. Consumer statutes , such as the Pennsylvania Unfair Trace Practices and Consumer Protection Law, civil right statutes such as Federal Title VII and the Pennsylvania Human Relations Act, and employee protection statutes, such as the Pennsylvania Wage Payment and Collection Law, all provide that a plaintiff may be awarded her legal fees in addition to other damages if the plaintiff succeeds on her claim. In addition, the Pennsylvania Contractor & Subcontractor Payment Act provides for the award of counsel fees to the substantially prevailing party in any proceeding to recover payments under that Act.

Why are fee shifting statutes important?

It can be said that these statutes are actually designed to encourage litigation, with the idea being that a plaintiff who brings such claims is benefiting the public at large by attacking discrimination. These statutes allow plaintiffs who could not otherwise afford to pay their lawyer to get their day in court. Second, these fee-shifting statutes tend to produce a positive practical result. That is, by establishing a risk that business might have to pay not just the plaintiff’s claims, but also both parties’ costs of litigating a case through trial , a fee-shifting statute can give business that extra incentive to settle cases that should be settled. The question remains why this rationale should not be applied to all civil cases, and to Plaintiffs as well as Defendants.

Do lawyers have to pay freight?

Yet in the end, until lawyers can afford to work for free, someone will have to pay the freight. The so-called “American Rule,” which is also the Pennsylvania rule, is that in the absence of a statutory or contractual provision to the contrary, each party to a lawsuit pays his own legal fees.

Do judges take kindly to a violation of a court order?

Judges do not generally take kindly to the violation of their orders, and if it is reasonably clear that a party has willfully violated a court order, it can be expected that the court will order the offending party to pay or reimburse the fees of the party who was required to seek judicial enforcement of the court order.

How long do you have to file a civil injury claim?

Shorter time limits – While you have two years to file a normal injury claim against a private party, when you file against the government, you will have only 30 to 180 days to take action, depending upon the municipality’s rules.

What happens if you fail to file a personal injury claim against a government entity?

If you fail to adhere to all of the special rules and procedures, you will nullify your rights to compensation entirely.

What is sovereign immunity in Pennsylvania?

State –The Sovereign Immunity Act, found in Pennsylvania Code § 8522, provides that the Commonwealth has immunity from lawsuits unless the victim would have normally been able to recover the damages in a non-government case, and one of nine exceptions apply. If your accident involved any of the following nine exceptions, you may be entitled to file a claim against the state.

Can you sue the government in Pennsylvania?

Many people wrongly assume that the law prohibits you from suing the government in Pennsylvania if you were injured on public property or by a government worker. This is not completely accurate. While the government does enjoy a measure of immunity from liability for injury victims’ damages, it is not immune in every circumstance. There are many types of cases in which you can seek recovery for your damages from the state or local municipality.

Can you sue the government?

Lawsuit limitations – You can only file a lawsuit against the government after you have exhausted all administrative remedies.

What happens if a lawyer doesn't recover?

If there is no recovery because the claim fails, the lawyer gets paid nothing. Contingency fees have been called the “key to the courthouse,” because many personal-injury victims or small businesses who have suffered a loss are not financially able to spend thousands of dollars pursuing their rights.

What happens if one party breaches a contract?

The typical attorney-fee clause states that if one party breaches the contract, the other party can sue and recover its attorney fees for bringing the suit. If you have a contract dispute or you if you are negotiating a contract, you should pay careful attention to any language on attorneys’ fees.

What is contingency fee?

A contingency fee is a fee agreement with a lawyer that allows the lawyer to take a percentage of any recovery as his fee. Rather than charging for the time he spends on the case and sending you a monthly bill for his time, the lawyer will get paid on the backend of the case.

Can a plaintiff recover attorney fees?

These statutes do not, however, permit prevailing defendants to recover their fees. This is because the laws were crafted to protect Plaintiffs with valid claims who would otherwise be unable to afford an attorney. If, for example, a company defrauds a consumer into buying a $5,000 product, the consumer has little incentive to pay thousands of dollars in attorneys’ fees to recover pennies or even lose money. The business’s bad conduct would go unchecked, since an attorney would also have little incentive to accept the case on a contingency basis. By permitting successful plaintiffs to recover their attorney fees—and in some cases bring class actions—these statutes can act as a check on corporate wrongdoing.

Can you recover attorney fees if you win a lawsuit?

Certain federal and state laws allow you to recover attorney fees if you win your lawsuit. Examples of these statutes include the Fair Labor Standards Act (which allows employees to sue for unpaid wages) and the Missouri Merchandising Practices Act (which allows consumers to sue when they have been deceived or misled).

Does each party pay its own lawyer?

For now, the general rule in America remains that each party pays its own lawyers.

Can you make the other side pay for your legal fees?

Invariably, one of the first questions clients have for us in these situations is, can I make the other side pay for my legal fees? In most cases, you cannot . But there are exceptions to the general rule (discussed below), and contingency fees offer a potential solution for cash-strapped litigants.

Does North Carolina have its own attorney fees?

North Carolina follows a modified version of the American Rule. The general rule in North Carolina is that each party pays its own attorneys' fees unless the recovery of those fees is specifically authorized by a statute enacted by the General Assembly. This is true even if the parties have agreed in a contract that the loser of any litigation between them will pay the winner's attorneys' fees.

Is litigation expensive?

Litigation is the stuff of rainy days. It is almost always disruptive, unpleasant, and expensive. Taking attorneys' fees into account, and doing so without expectation of recovering them, generally is well advised when making decisions on how to resolve disputes.

What is attorney fees?

Costs are Different From Attorney's Fees. Attorney's fees are by far the largest component of a litigant's practical expenses in pursuing a lawsuit, but these fees are usually considered separately from "costs" when it comes to what the prevailing party may recover from the other side.

Who does the cost go to in a lawsuit?

Costs May Go to the "Prevailing Party". In most jurisdictions, courts award "costs" to the prevailing party in a lawsuit -- the side who wins, in other words. However, the "costs" that are allowable may not compensate the prevailing party for all actual out-of-pocket expenditures.

Do personal injury attorneys get paid?

Finally, what about personal injury cases, which are usually handled under a contingency fee agreement, where the attorney does not get paid a fee unless the client receives a settlement or court award? The client may still be on the financial hook for costs associated with their personal injury lawsuit, win or lose. Learn more: Who Pays "Costs" in a Personal Injury Case?

What are awardable costs in a lawsuit?

Instead, awardable costs could be capped under an applicable state law, and that limit may not come close to making the prevailing party whole in terms of what was expended to successfully litigate the case. So, the prevailing party could end up covering a significant percentage of the actual costs incurred, thereby reducing the amount of its net recovery.

What happens if you win a money judgment?

As a practical matter, what this means is that when you embark on a lawsuit you need to give serious consideration to the amount of money you will spend on the case, and the likelihood that you will be able to recoup those funds if you win the case. Many litigants are surprised to learn that even though they have prevailed and obtained a money judgment in their favor, the amount of their judgment is significantly reduced by the amount of unreimbursable costs expended. It's a good idea to get a realistic sense of the financial side of your case right at the outset. Otherwise, you may very well win the battle but lose the war.

Can a litigant recover attorney fees?

So, a litigant who prevails in court isn 't automatically entitled to reco up its attorney's fees as part of that judgment. In many cases, the amount of attorney's fees incurred in bringing the case to trial constitutes a large percentage of the judgment amount; as a result, the net amount of the recovery may be quite small.

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