Legal Question in Business Law in California
attorneys fees and costs
If there is a dispute over a verbal contract, who pays for attorneys
fees and costs if it goes to court?
Thank you
6 Answers from Attorneys
Re: attorneys fees and costs
Each will bare their own costs. For 18 yrs business litigation experience call me directly at 16192223504.
Re: attorneys fees and costs
Unless the contract provides for attorneys' fees, each party bears his/her own attorneys' fees. Allowable costs are awarded to the prevailing party. See Code of Civil Procedure section 1033.5.
Re: attorneys fees and costs
Each party pays their own attorney fees. The prevailing party normally recovers costs. An exception exists for attorney fees if a particular statute is involved. Please call me if you have any questions.
Re: attorneys fees and costs
If the contract dispute was for an "open book account" as defined in Civil Code Section 337a, you could recover up to $1000 in attorney's fees depending on the amount owed. However, the general rule in California is that each party pays their own attorney's fees unless there is a "prevailing party" attorney's fees clause in a written contract or a specific statute that applies to the type of case. You can contact my office is you need more information.
Re: attorneys fees and costs
As the previous answers point out, each party pays its own attorney fees unless the contract contains an attorney fee clause. If there is a clause that "bites" one way but not the other, it will by statute (Civil Code section 1717) be interpreted to bind whichever party fails to prevail.
You can probably gather all of this by combining the information in the preceding answers. An important (in your case) item that isn't mentioned by anyone is that the contract need not be in writing. CC 1717 says "a contract," not "a written contract" or "a contract in writing." The Court of Appeal has so held in A&M Produce Co. v. FMC Corp. (1982) 135 Cal.App. 3d 473 at 495.
Remaining questions are whether the oral contract is subject to a Statute of Frauds defense and whether its terms can be proven.
Re: attorneys fees and costs
Everyone pays their own without a written agreement to the contrary. If you need to get an attorney for this, despite the news, contact me.
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