Attorney’s Fees & the American Rule

Generally, each party to a dispute must bear his, her or its own litigation expenses.  In other words, each party pays his or her own attorneys’ and expert witness fees, and the other costs of a lawsuit.  The winner does not get to recover those fees from the loser.  This system is known as the “American Rule.”  There are two exceptions to the American Rule.  A party can recover litigation expenses to the extent:
1.    Permitted by a contract signed by a party against whom litigation expenses might be awarded.
2.    Permitted by a statute.
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