The general rule regarding attorneys’ fees is that each party, even the winning party, must pay their own attorneys’ fees. This is often referred to as the “American Rule.” There are three exceptions, however, in which a party may recover attorneys’ fees. These instances include when: (1) a contract between the parties expressly states that the losing party will pay the winners’ fees; (2) the Mississippi legislature has passed a law saying that the losing party will have to pay the winners’ fees; or (3) in the instance of court sanctions or a finding of bad faith. These instances are examined further below.
Attorneys’ Fees Per Contract
Mississippi courts have repeatedly upheld attorneys’ fee provisions within contracts. Examples of contracts include: (1) leases, (2) loan agreements, (3) service contracts, and (4) sales agreements. In a breach of contract case a contract that a customer in default would be responsible for all expenses related to enforcing the contract. The Court will only reimburse attorneys’ fees that were actually incurred to enforce the parties’ contract. The parties must present evidence to the Court of the fees incurred. It is important for every business to examine their contracts to ensure that attorneys’ fees are provided for in the event another party’s breach.
Attorneys’ Fees Per Statute
Another method by which a party may recover attorneys’ fees is by the Mississippi legislature. For example, the Mississippi Litigation Accountability Act allows a defendant who has been sued on a frivolous lawsuit to have the lawsuit dismissed and the defendant is allowed to recover reasonable attorneys’ fees and costs if: (1) the claim or defense was asserted without substantial justification, a claim or defense was interposed for delay or harassment, or 3) improper conduct was used unnecessarily to expand the lawsuit. The Court may also award reasonable attorneys’ fees if a party or their attorney engaged in wrongful conduct. The Mississippi Legislature also allows attorneys’ fees for plaintiffs who obtain a judgment for the amount demanded prior to the lawsuit to recover attorneys’ fees. Finally, reasonable attorneys’ fees may be awarded in a judicial proceeding involving the administration of a trust. There are several other statutes that allow for attorneys’ fees for the winning party.
Sanction/Bad Faith
Courts may also grant attorneys’ fees as an equitable remedy in cases involving: (1) bad faith litigation, (2) frivolous conduct, (3) contempt of court, (4) discovery violations. For example, the Mississippi Supreme Court has affirmed that fees could be awarded where a party’s actions were “vexatious or in bad faith.” Additionally, under Rule 11 of the Mississippi Rules of Civil Procedure, courts may impose monetary sanctions, including attorneys’ fees, against parties or attorneys who submit pleadings without a good-faith basis in law or fact.
Conclusion
Your lawyer should always determine whether they are able to recoup attorneys’ fees for their services at the outset of every case. If you are a business, you should examine your contracts and invoices to ensure that those documents have language that contractually entitles you to attorneys’ fees. If you have any questions regarding this topic, contact Brown Legal Group today.