Legal Question in Credit and Debt Law in California
Breach Of Contract
I loaned money under a contract. The contract included that if there was a breach of contract, the borrower would be responsible for the entire amount of the loan, attorneys fees, court fees and any other fees included in collecting the funds. I understand winning the judgement is the first step. Do these provisions protect me from having to pay the fees as stated above? In other words, in court, will the loan and other fees be added up and included in the total amount the borrower owes?
3 Answers from Attorneys
Re: Breach Of Contract
Thanks for your posting. The items listed in the contract will be awarded if actually spent.
In other words, you can't just have the court accept the lawsuit without paying the filing fees, and most attorneys will require that you pay them and then get reimbursed if you collect your judgment (with some exceptions).
Only if you can show the judge that you spent money on attorneys fees or filing fees, costs to serve the defendant, can you ask for those amounts to be reimbursed.
Re: Breach Of Contract
If you prevail at Court, the Court under Civil Code Section 1717 will award you recovery of reasonble attorneys fees and costs. Reasonable attorney fees may not be actual attorney fees. We take cases such as this on either an hourly or contigency fee agreement. We handle cases throughout California. If you fax me the documetation you have to 714 363 0229, I will provide you with free consultation.
Re: Breach Of Contract
You must first prepare the lawsuit and file it with the appropriate court. If the contract calls for court costs and attorney fees, you must include that in your complaint.
You must pay the filing fee and the costs of service of process. Assuming you get a judgment, the amount will be based upon the contractual award and the reasonable fees. Then it is your responsibility to collect on the judgment, again paying any necessary fees up front, and collecting them as you recover on the judgment.
If the debtor is in real trouble, financially, you will need to be careful that, after you go to all of that trouble, he could file a bankruptcy, and you are left out in the cold ... not only unable to collect on the contract, but losing all of the fees you have paid out.
Good luck. Let me know if you need help.