Legal Ease by
Shane Givens
Nov. 30, 2010
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Who pays attorney fees? A man came into my office a few days ago and asked me this question: “My neighbor borrowed $200 from me and won't pay me back. I want to file a lawsuit against him.” At that point, I quoted him a fee for my services and he replied, “I'll just let him pay your bill.” So, who pays this man's attorney fees and court costs? The majority of the time, each party to a lawsuit is responsible for paying his or her own attorney fees, usually regardless of who wins. This comes as a shock to many people who believe that the losing party should pay the winning party's fees and costs. There are basically only two exceptions to the general rule that everyone pays their own costs. First, if there is a contract between the parties that discusses who pays the costs of a lawsuit, the court will assign the fees accordingly. For this exception to apply there must be a valid written agreement that clearly discusses who pays attorney fees and under what circumstances those fees are to be paid. Second, there are a few laws within the Alabama Code that provide for the losing party of certain types of lawsuits to pay the wining party's attorney fees. These code provisions are very specific and do not cover most lawsuits. Lawsuits regarding unpaid money, for example, are generally not covered. In rare situations, the judge can order a party to pay another's attorney fees and court costs. Although nearly every complaint asks the judge to order the other party to pay for all costs, I have personally never seen this happen. I always advise people that although he or she can ask for this kind of relief, they should not expect to get it. Because each party typically has to pay their own attorney fees and costs, sometimes it is simply not economical to hire an attorney. In fact, the gentleman in the question above would spend more on attorney fees and court costs than what he is owed. In these situations, it is sometimes better to file a small claims action. If someone is owed less than $3,000, most of the this is the way to go. Small claims court is very much like the “Judge Judy” or “The People's Court” TV shows, where two parties stand before the judge and plead their case — without lawyers. For more information about small claims court, inquire at the circuit clerk's office inside the Cherokee County Courthouse. This column is intended for general information purposes only. The answers to most legal problems rely on the specific facts of a particular situation; therefore, it is important to see a lawyer when such situations arise. Please e-mail questions for future columns to givenslaw@tds.net. |