Legal Question in Business Law in California

Breach of Contract

In a breach of contract action can the prevailing party recover attorny fees, if the contract does not hold a provision for such recovery?


Asked on 3/31/06, 12:32 pm

3 Answers from Attorneys

Joel Selik www.SelikLaw.com

Re: Breach of Contract

No attorney fees.

Joel

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Answered on 3/31/06, 12:36 pm
David Arase Arase, Habashy & Orozco

Re: Breach of Contract

The general rule is that, without a contractual provision, statute, or case law to the contrary, attorney fees and other litigation costs are generally not recoverable by the prevailing party in a breach of contract case.

Gnerally in a breach of contract action you are allowed to recover the following:

(1) Compensatory Damages - money to reimburse you for costs to compensate for your loss.

(2) Consequential and Incidental Damages - money for losses caused by the breach that were foreseeable. Foreseeable damages means that each side reasonably knew that, at the time of the contract, there would be potential losses if there was a breach.

It often makes sense for both parties to directly negotiate a settlement for a breach. However, if the matter involves a significant amount, it would be prudent to retain an attorney to help you propose settlement terms and to review any proposed settlement in advance.

Other alternatives for dispute resolution include mediation and arbitration. These avenues for obtaining a remedy may be more cost effective than simply filing a lawsuit.

Without reviewing the documents and the facts specific to your case I cannot really give you any proper legal advice.

Any and all communications via this website between the inquirer and Arase, Habashy & Orozco does not constitute an attorney client relationship and does not bind wither party into any contractual or attorney client relationship

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Answered on 3/31/06, 1:03 pm
JOHN GUERRINI THE GUERRINI LAW FIRM - COLLECTION LAWYERS

Re: Breach of Contract

No. Absent a written agreement between the parties, attorney fees are not recoverable as a matter of right.

However, even so, you may be entitled to statutory attorneys' fees of up to $1000 for suit on an open book account.

For additional information, seek out a qualified business litigator.

Good luck.

***No Legal Services or Attorney Client Relationship - Although this email may provide information concerning potential legal issues, it is not a substitute for legal advice from qualified counsel. You should not and are not authorized to rely on this email as a source of legal advice. Until a formal Retainer Agreement is executed, any communication between you and The Guerrini Law Firm cannot create any attorney-client relationship between you and The Guerrini Law Firm.***

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Answered on 3/31/06, 10:37 pm


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