American Rule: Difference between revisions
Pestergaines (talk | contribs) Polished. |
Pestergaines (talk | contribs) fixed cat |
||
| Line 7: | Line 7: | ||
* {{w|American rule (attorney's fees)}} on Wikipedia | * {{w|American rule (attorney's fees)}} on Wikipedia | ||
[[Category: | [[Category:United States law]] | ||
{{stub}} | {{stub}} | ||
Latest revision as of 08:58, 27 March 2013
The American Rule states that in a lawsuit, each party pays his own attorney's fees, no matter who wins.[citation needed]
Views
A drawback of this rule is that it encourages a form of extortion in which a litigant says, for example, "Settle for $25,000 or pay $250,000 to successfully defend against this lawsuit." The American Rule was originally enacted to protect debtors; a creditor would only sue if the debt were so large as to justify the legal fees required to obtain a judgment. Very few other countries have enacted the American Rule. Most use the English Rule, under which the losing side in a lawsuit pays the attorney fees of both sides.[citation needed]
Links
- American rule (attorney's fees) on Wikipedia