News & Analysis as of

American Rule

Butler Snow LLP

Word Games Aside … an agreement to settle is an agreement to settle

by Butler Snow LLP on

The Tennessee Court of Appeals refused to let a litigant weasel out of a negotiated and binding agreement to settle disputed claims. Tim Grace v. Jeanna Grace d/b/a Grace Trucking, Case No. W2016-00650-COA-Re-CV (11/29/16)....more

Burr & Forman

Florida's Fourth DCA Holds Borrower is Not Entitled to Attorney’s Fees for Dismissal Based on Lack of Standing to Foreclose

by Burr & Forman on

Florida’s Fourth DCA issued an opinion on April 12, 2017 in Nationstar Mortgage LLC v. Glass, No. 4D15-4561, following suit with the Third and Fifth DCAs in denying a borrower’s motion for attorney’s fees based on a provision...more

Allen Matkins

Dismissal Based On Forum Non Conveniens Does Not Trigger Fee Shifting

by Allen Matkins on

California generally follows the “American Rule” with respect to attorney’s fees. Trope v. Katz, 11 Cal.4th 274, 278 (1995). Under the American Rule each party to a lawsuit must ordinarily pay his own attorney’s fees. A...more

Robins Kaplan LLP

Breach of Fiduciary Duty (and Related) Claims Are Not Easily Defeated: A Case Study in Motions for Judgment on the Pleadings

by Robins Kaplan LLP on

Just what must be alleged for claims for breach of fiduciary duty to proceed past initial pleadings and into meaningful fact development? In a recent decision, the United States Bankruptcy Court for the Eastern District of...more

Farrell Fritz, P.C.

Court of Appeals to Decide Controversial Partnership Dissolution Case

by Farrell Fritz, P.C. on

In a controversial ruling last year in Congel v Malfitano, the Appellate Division, Second Department, affirmed and modified in part a post-trial judgment against a former 3.08% partner in a general partnership that owns an...more

Bass, Berry & Sims PLC

Chris Lazarini Comments on Application of Manifest Disregard of the Law

by Bass, Berry & Sims PLC on

Bass, Berry & Sims attorney Chris Lazarini commented on a case in which a former trader fraudulently purchased $1 billion in Apple shares that ultimately forced the closure of the trader's firm, Rochdale Securities. Rochdale...more

Manatt, Phelps & Phillips, LLP

TCPA Connect - August 2016

FCC Issues Report and Order on Budget Act Exemptions - On August 11, 2016, the Federal Communications Commission issued a Report and Order implementing Section 301 of the Bipartisan Budget Act of 2015, which amended the...more

Buchalter

The Supreme Court Clarifies Standard For Attorney Fee Awards In Copyright Cases

by Buchalter on

Copyright infringement litigation has been on the rise in recent years, particularly in the Central District of California, with the apparel industry feeling the brunt of this uptick. In a typical case, a plaintiff alleges...more

Polsinelli

Texas Court of Appeals: Parties Cannot Recover Statutory Attorney's Fees from an LLC for Breach of Contract Claims

by Polsinelli on

A recent decision from the Texas Court of Appeals in Houston closes the door to the recovery of attorney's fees from limited liability companies under Chapter 38 of the Texas Civil Practice and Remedies Code, one of the few...more

BakerHostetler

Recovering Attorney's Fees for Breach of Contract Under Texas Law Recent Cases Say No!

by BakerHostetler on

In the energy sector, many contracts contain Texas choice of law provisions, or are performed in Texas, which means that Texas law probably applies. The conventional wisdom in Texas is that a prevailing party can recover its...more

Bryan Cave Leighton Paisner

ASARCO’s Revenge: Do Estate Professionals Now Have to Charge the Same Fees to an Estate or Committee that They Would Charge a...

by Bryan Cave Leighton Paisner on

Either from our prior posts, or from the great posts from Stone and Baxter’s Plan Proponent blog or from Bracewell’s Basis Points blog, we all know the Supreme Court’s holding in ASARCO: a strict interpretation of Section...more

Hinshaw & Culbertson LLP

Is the American Rule Dead in New Jersey?

by Hinshaw & Culbertson LLP on

Ok, so maybe "dead" is a bit hyperbolic, but the New Jersey Supreme Court's decision in Innes v. Marzano-Lesnevich, No. 074291, ___ N.J. _____ (N.J. Apr. 26, 2016) has raised serious questions about just how far the New...more

Bryan Cave Leighton Paisner

Delaware Bankruptcy Court Holds, Twice: “ASARCO is Here to Stay” (But Your Authors Have Hatched Another Plan; Read Below!)

by Bryan Cave Leighton Paisner on

You may recall the holding and analysis of ASARCO from Jay’s previous post, here. At bottom, ASARCO followed a strict interpretation of Section 330(a) of the Bankruptcy Code, holding that professionals are allowed to charge...more

Kelley Drye & Warren LLP

Delaware Bankruptcy Judge Rejects Effort to Circumvent Supreme Court’s Asarco Decision

by Kelley Drye & Warren LLP on

The Supreme Court’s decision last term in Baker Botts v. Asarco, in which the Court ruled that professionals that are paid from a debtor’s bankruptcy estate cannot be compensated for time spent defending their fee...more

Cole Schotz

Delaware Bankruptcy Courts Foreclose Creative Attempts to Distinguish ASARCO

by Cole Schotz on

On June 15, 2015, the U.S. Supreme Court issued its opinion in the case of Baker Botts L.L.P. v. ASARCO LLC, 135 S. Ct. 2158 (2015), denying compensation to two law firms for the fees they incurred in defending objections to...more

Morris James LLP

Court Of Chancery Reverses Director Resignation

by Morris James LLP on

In this unusual case, the Court of Chancery has reinstated a director who was tricked into resigning. The opinion has a good discussion of how directors may resign and when their resignation is not effective....more

Moore & Van Allen PLLC

North Carolina Court Rules Class Action Settlements Can Award Attorneys’ Fees, but Note of Caution to Local Counsel

by Moore & Van Allen PLLC on

The North Carolina Court of Appeals considered for the first time whether it is legal in a class action settlement agreement for one party to agree to pay the other’s attorneys’ fees and expenses. The court concluded that it...more

Burr & Forman

Can I Get My Legal Fees Back for Having to Defend This Case?

by Burr & Forman on

One of the most common questions I get from my clients is whether they can recover their legal expenses for having to defend a meritless case. The short answer is that in most cases, no. That may seem unfair, especially...more

Brooks Pierce

Court Of Appeals Affirms Business Court Award Of $1 Million In Fees To Class Counsel

by Brooks Pierce on

It seems like forever ago that the then venerable North Carolina institution, Wachovia Bank, failed and was acquired by Wells Fargo. (This was actually seven years ago). But just last week came what might be the final...more

Snell & Wilmer

Delaware Legislature Rejects Fee-Shifting Bylaws for Stock Corporations

by Snell & Wilmer on

On June 24, Delaware’s Governor signed Senate Bill No. 75 into law and closed the door on the tantalizing prospect of fee shifting (“loser pays”) bylaws for Delaware stock corporations. The full text of the bill can be read...more

Butler Snow LLP

The “American Rule” Prevails: The Supreme Court denies certain fees in bankruptcy cases

by Butler Snow LLP on

In 2005, ASARCO LLC, a copper mining, smelting and refining company, was in financial trouble and filed for Chapter 11 bankruptcy. Relying on §327(a) and §1107(a) of the Bankruptcy Code, ASARCO retained two law firms to...more

Arnall Golden Gregory LLP

U.S. Supreme Court: Attorney’s Fees Provisions Must be Strictly Construed

by Arnall Golden Gregory LLP on

“Our basic point of reference when considering the award of attorney’s fees is the bedrock principle known as the American Rule: Each litigant pays his own attorney’s fees, win or lose, unless a statute or contract provides...more

Arnall Golden Gregory LLP

Contractual Provisions Can Aid in the Recovery of Attorney’s Fees, But Consider the Unintended Consequences

by Arnall Golden Gregory LLP on

Although the “American Rule” provides that each side pay its own attorneys’ fees, if your dispute arises from a contractual relationship, a “prevailing party” provision or indemnification clause may obligate one of the...more

Butler Snow LLP

Pay to Play: §327(a) Professionals Pay their Own Defense Costs in Litigation Challenging Fee Applications

by Butler Snow LLP on

On June 15, 2015, the Supreme Court of the United States made clear that attorneys and other professionals hired under §327(a) of the Bankruptcy Code are not entitled to fees for their time spent litigating a §330(a)(1) fee...more

Shumaker, Loop & Kendrick, LLP

Client Alert: Hurts So Good - US Supreme Court Rejects Attorneys Fees in Chapter 11

On June 15, 2015, the US Supreme Court ruled that a law firm could not recover fees it incurred in defending its own fee application. THE ASARCO CASE - The case involved the copper company ASARCO LLC that filed...more

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Updated: May 25, 2018:

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Updates to This Policy

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