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….
Legal Articles
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,…
Special Circumstances Exception to Attorney Fees
There are exceptions to the general rule that a party/litigant must cover its attorney fees in litigation regardless of the outcome. The exceptions are when (1) fees are authorized by statute or contract, (2) very unusual circumstances exist so it may be said equity demands a balance of benefits, (3) the fees result from an…