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?
3 Answers from Attorneys
Re: Breach of Contract
No attorney fees.
Joel
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.
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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.
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