American Rule: Difference between revisions
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The '''American Rule''' states that in a lawsuit, each party pays his own attorney's fees, no matter who wins. 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 The American Rule was originally enacted to protect debtors; a creditor would only sue if the debt were so large as to justify the legal fees required to obtain a judgment.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. {{ | The '''American Rule''' states that in a lawsuit, each party pays his own attorney's fees, no matter who wins.{{Fact}} | ||
==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 The American Rule was originally enacted to protect debtors; a creditor would only sue if the debt were so large as to justify the legal fees required to obtain a judgment.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.{{Fact}} | |||
==Links== | |||
* {{w|American rule (attorney's fees)}} on Wikipedia | |||
[[Category:Law]] | [[Category:Law]] | ||
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Revision as of 18:07, 14 January 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 The American Rule was originally enacted to protect debtors; a creditor would only sue if the debt were so large as to justify the legal fees required to obtain a judgment.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