One of the narrow exceptions to the American Rule — that each side is responsible for his/her own attorney fees win or lose — is the collateral litigation exception. “[W]here the natural and proximate result of a breach of duty is to involve the wronged party in collateral litigation,” attorney fees are available. Johnson v….
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Common Fund Exception
The general rule (i.e., the “American Rule”) is that a party to a lawsuit cannot recover attorney fees. This is true even if the party wins the lawsuit. A narrow exception to this rule is the common fund exception. Under this common fund exception to the American Rule, a litigant may recover attorney fees where…
Exceptions to American Rule on Attorney Fees
The “American Rule” in litigation is that all parties, win or lose, are responsible for their own attorney fees. There are five main exceptions to this rule in Missouri: first, when a statute authorizes recovery; second, when a contract permits an award of fees; third, when a party is forced to defendant collateral litigation; fourth,…