when do judges use an equitable remedy to award attorney fees

by Shannon Ward 7 min read

The justices held that courts have the power to award attorney fees as an equitable remedy in exceptional cases an issue that had not reached the court until Stafsholt's case The high court also found that Needham had been correct in letting one of the loan servicers in the case collect interest on the loan's principal during the time Stafsholt had defaulted.

But when attorney's fees are awarded to a prevailing party pursuant to a statutory provision, they are regarded as an “equitable” remedy because they raise “issues collateral to and separate from the decision on the merits.”Aug 18, 2017

Full Answer

When to use equitable remedies in a lawsuit?

Equitable Remedies. This type of equitable remedy -- granting attorneys' fees to the winning side -- is often used when the losing side brought a lawsuit that was frivolous, in bad faith, or to oppress the defendant, and the defendant wins.

When does a court have the authority to award Attorney’s fees?

2) Court Order – Courts have the authority to award attorneys’ fees. While they do not do this very often, one situation where this occurs is when the court feels that one party was acting in bad faith. This bad faith behavior can either be actions during the lawsuit, or conduct that gave rise to the suit.

Can a judge increase the amount of a jury award?

A state court judge can also impose an "additur" increasing the amount of a jury award, which, in effect, can have the same result, but again, it's rare. You shouldn't count on receiving additional funds through either of these mechanisms.

Who pays the opponent's attorney's fees in a lawsuit?

In the United States, the rule (called the American Rule) is that each party pays only their own attorneys' fees, regardless of whether they win or lose. Even so, exceptions exist. Keep reading to learn when you might be responsible for your opponent’s attorneys’ fees.

When generally are equitable remedies available?

A court will typically award equitable remedies when a legal remedy is insufficient or inadequate. For example, courts will typically award equitable relief for a claim which involves a particular or unique piece of real estate, or if the plaintiff requests specific performance.

Why is equitable remedy used?

Equitable remedies are actions that the court prescribes which will serve to resolve the breach or dispute. Equitable remedies are typically granted when legal remedies or monetary compensation cannot adequately resolve the wrongdoing.

How does the court attempt to create an equitable remedy?

An equitable remedy is a legal remedy awarded to a party in an action or lawsuit when the court finds that the plaintiff has been wronged. Equitable remedies originated in the 17th century when judges had to decide between two parties, and the judge would decide based on what was fair and just for each party.

What are the 3 equitable remedies?

There are three types of equitable remedies: specific performance, injunction, and restitution.

What are the reasons you might seek an equitable remedy instead of money damages?

A court may decide on equitable remedies when it believes a simple payment of damages isn't good enough to settle the case. A common type of equitable remedy used in the case of unique goods is called "specific performance." In this type, a court orders the breaching party to fulfill the exact terms of the agreement.

What are the two most common equitable remedies?

The two main equitable remedies are injunctions and specific performance, and in casual legal parlance references to equitable remedies are often expressed as referring to those two remedies alone. Injunctions may be mandatory (requiring a person to do something) or prohibitory (stopping them doing something).

What is the difference between legal remedy and equitable remedy?

Legal remedies are ones that allow the party not in breach to recover money, whereas equitable remedies involve resolution through non-monetary solutions. Equitable remedies are actions rather than a financial award.

What is the meaning of equitable remedies?

The practice of granting equitable remedies came about to compensate for the inadequacies of the common law courts which could not grant remedy if the affected party wanted the performance of the contract or wanted to prevent the commission of a wrong threatened.

What are the more common types of equitable relief?

Equitable relief is distinguished from remedies for legal actions in that, instead of seeking merely monetary damages, the plaintiff is seeking that the court compels the defendant to perform a certain act or refrain from a certain act. Common types of equitable relief are injunctions, specific performance, or vacatur.

What is an equitable remedy?

(In law, equity generally means "fairness," and an equitable remedy is a fair solution that a judge develops because doing otherwise would lead to unfairness.) This type of equitable remedy—granting attorneys' fees to the winning side—is often used when the losing side brought a lawsuit that was frivolous, in bad faith, or to oppress the defendant, and the defendant wins.

When do attorneys' fees get awarded?

It's common for attorneys' fees to be awarded when the contract at issue requires the losing side to pay the winning side's legal fees and costs. This usually occurs in a business context where the parties have specifically included an attorney fee requirement in a contract.

What is the law that requires attorneys fees to be paid?

One type of attorney fee statute that's common in many states allows a judge to require attorneys' fees to be paid to the winning party in a lawsuit that benefited the public or was brought to enforce a right that significantly affected the public interest. Another common state law allows for attorneys' fees to be paid by ...

When do you grant attorneys' fees?

This type of equitable remedy—granting attorneys' fees to the winning side—is often used when the losing side brought a lawsuit that was frivolous, in bad faith, or to oppress the defendant, and the defendant wins. Also, once in a while, a judge will grant attorneys' fees in cases of extreme attorney misconduct, to warn the offending attorney.

Can you get attorney fees wiped out?

Attorneys' fees are generally dischargeable, meaning you can wipe them out. If your income is low, you will probably qualify for a quick Chapter 7 bankruptcy. Otherwise, you'll likely pay the fees off over five years in a Chapter 13 case.

Can you pay an attorney's fee in Wisconsin?

And a Wisconsin law calls for the losing side to pay attorneys' fees ...

Can a judge increase jury award?

A state court judge can also impose an "additur" increasing the amount of a jury award, which, in effect, can have the same result, but again, it's rare. You shouldn't count on receiving additional funds through either of these mechanisms.

Which Supreme Court case held that each party is responsible for their own attorney fees?

The American rule holds that in the absence of certain exceptions, each party is responsible for his or her own attorney fees. This rule stems from the 1796 United States Supreme Court decision in Arcambel v.

What are the most important considerations for an attorney?

One of the most important considerations for any attorney is attorney fees: whether obtaining them or making sure that one does not have to pay them. This Article is a guide on how to navigate these important considerations.

What are the rules of appellate procedure in West Virginia?

The rule provides that sanctions, including attorney fees, may be assessed against an attorney “who unreasonably and vexatiously increase [d] the costs of litigation through the inclusion of unnecessary material in the appendix or designated record.” [221] As the Rule suggests, it “was added in order to strongly discourage the parties from needlessly increasing the costs of litigation by including unnecessary material in an appendix or designated record.” [222]

What is the common fund doctrine?

[119] This doctrine is sometimes referred to as the “equitable fund” or the “fund-in-court” doctrine. [120] Whatever the nomenclature, this doctrine dates to 1881 in the United States Supreme Court case of Trustees v. Greenough. [121] The doctrine recognizes “that a litigant or a lawyer who recovers a common fund for the benefit of persons other than himself or his client is entitled to a reasonable attorney's fee from the fund as a whole.” [122] As with most of the exceptions to the American rule, it is based on equitable principles: i.e., “persons who obtain the benefit of a lawsuit without contributing to its cost are unjustly enriched at the successful litigant's expense.” [123] Stated another way, all those who benefit from a common fund should contribute, not just the plaintiffs who have signed a fee agreement with counsel.

What is the purpose of the American rule in a litigant's purse?

implements a policy in favor of control over one's own expenses. A litigant may budget his attorneys' fees, and know that, whatever happens, he will not be forced over that figure by the uncontrolled cost of his opponent's counsel. Thus, a litigant's purse is protected by the American rule.

What is the rule 11 of the West Virginia Rules of Civil Procedure?

Rule 11 of the West Virginia Rules of Civil Procedure requires that any pleading , motion, and/or other paper filed with the court be signed. [158] By signing, submitting, and/or advocating for the position taken in a pleading, motion, and/or other paper, the signor is making certain representations to the court. Specifically,

Is attorney fees inviolable?

While the American rule and its prohibition on awarding attorney fees is the starting point, it is by no means inviolable. Over the years, several exceptions have entered into the jurisprudence. Some of these exceptions have been judicially created, such as bad faith doctrine, certain class action cases, the essential to equities doctrine, and insurance cases. The state code and rules have developed others.

What are the three equitable grounds for awarding attorneys fees in Florida?

First, a court may award fees based upon inequitable conduct. Second, a court may award fees based on an attorney’s efforts to create a common fund. Third, a court may award fees based on a person’s efforts to preserve assets in ...

What is the inequitable conduct doctrine?

The inequitable conduct doctrine should deter vexatious litigation tactics aimed at diminution.15 The doctrine not only extends to misconduct during litigation, but also extends to misconduct before the litigation.16 Thus, the doctrine encourages litigants to police themselves.

Can an attorney's fee be awarded at equity?

An award of attorneys’ fees is in derogation of common law,1 but has occasionally been permitted at equity. At law, a court may only award attorneys’ fees when the award is expressly provided for by statute, rule, or contract.2 At equity, courts may award attorneys’ fees under limited circumstances. Given their equitable roles, probate, guardianship, trust, and family courts have occasion to award attorneys’ fees as a matter of fairness to the parties. Derived from the historic powers of chancery, modern courts have the inherent, although limited, authority to award attorneys’ fees on equitable grounds.