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ARTICLE · 03 JULY 2012

Attorney Fees Provision May Not Be As Powerful As You Think

Defendants who are sued for breach of contract often take comfort in the fact that the contract contains a provision that will award them attorney fees if they prevail in the action.

United StatesLitigation, Mediation & Arbitration

Defendants who are sued for breach of contract often take comfort in the fact that the contract contains a provision that will award them attorney fees if they prevail in the action. The more frivolous the action, the more confident a defendant may feel, as an attorney fees award will seemingly accompany a final judgment. But if a plaintiff voluntarily dismisses his case before trial, a defendant may "feel" like a prevailing party, but has absolutely no right to recover any fees. It may be only after attorney fees have piled up that a plaintiff is persuaded of the futility of the case and the necessity of dismissal, yet that is exactly when attorney fees are not recoverable. In this way, a defendant is often at the mercy of a plaintiff's last-minute decision to dismiss a case, and has little assurance of being able to recoup attorney fees for defending against even the most frivolous cases. In fact, the more frivolous the case, the more likely a voluntary dismissal

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