Note that the courts still have the power to determine whether the legal fees payable were reasonable. It is not uncommon for a judge to significantly reduce the amount of legal fees charged, even if the judge finds that a party has prevailed. On the other hand, a contractor may leave even less discretion to the court or arbitrator by directly linking the dominant party to the parties` final comparison position. This is particularly the case where the contractor is afraid of being subjected to an excessive claim or an unreasonable opponent. Here is an example of a clause that addresses these concerns: b) benefactors. The typical legal fees clause allows any party to recover legal fees. However, the clause may restrict that right, so that only one of the parties, if it is the dominant party, would be able to recover legal fees. If the parties intend to recover only one of them if it is necessary, they do so in the agreement by appointing the party who can benefit from the solicitor`s rights clause. „In the event of litigation related to the purpose of this agreement, the dominant party is entitled to receive reasonable legal fees and fees from the other party.“ For example, many agreements have a general pricing clause that is the „…

Fees and expenses, including reasonable legal fees,“ In this example, it is explicit that „costs and expenses“ includes legal fees, which is important because some jurisdictions do not incorporate legal fees into their definition of „costs and expenses.“ Lawyer`s fees may be housed in a separate contractual clause, but they are often found as sub-clause under a larger pricing clause. Maria Giardina, of the law firm Sedgwick, argues for a limitation of claims. „Keep the subject of the legal fee clause that is closely adapted to the contract. Clauses providing for the recovery of legal fees in an action to „enforce the contract“ or in the event of „violation“ or „delay below“ of the contract are interpreted in a restrictive manner in order to avoid recovery in fact unlawful. Avoid language such as „resulting from the agreement“ or „in relation to“ the agreement, which expands the pricing clause and applies to non-contractual claims. Arrangement prudent clause to avoid recovery of legal fees in Tort, fall 2008. Nevertheless, a clause on legal fees can be an important lever in transaction negotiations. As it tends to appear at the back of most contractual forms, in the middle of the „boilerplate“ language, it often receives little attention.