Indiana Sample Letter for Explanation of Attorneys Fees and Settlement Payment
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FAQ
The American Rule is a rule in the U.S. justice system that says two opposing sides in a legal matter must pay their own attorney fees, regardless of who wins the case. The rationale of the rule is that a plaintiff should not be deterred from bringing a case to court for fear of prohibitive costs.
The ?American Rule? requires each party to bear its own attorney's fees in litigation absent a statutory or contractual exception. [i] Fee-shifting provisions are the exceptions to that general rule.
The American rule for attorney fees requires each party to pay its attor- ney, win or lose; the English rule (applicable in most of the world) requires the losing party to pay the winner's reasonable attorney fees.
In the United States, the general rule, which derives from common law, is that each side in a legal proceeding pays for its own attorney. There are many exceptions, however, in which federal courts, and occasionally federal agencies, may order the losing party to pay the attorneys' fees of the prevailing party.
Suing for legal fees is common in many lawsuits. However, just because you sue for legal fees doesn't mean the judge will give them to you. Some states have laws that require the party that loses a lawsuit to pay the winning side's legal fees in certain cases. These are called prevailing party provisions.
