Review Your Contracts for Fee Shifting Agreements

A fee-shifting agreement requires the non-prevailing party in a legal matter to pay the legal fees and costs of the prevailing party. We previously highlighted Jon Friedmann’s victory in a complex foreclosure case, which resulted in a six-figure verdict for the firm’s client in a jury-waived trial. After the trial, the judge held a separate hearing on attorney’s fees and awarded the client both attorney’s fees and costs, the sum of which totaled nearly half a million dollars. This case highlights the importance of reviewing the contracts you have in place with your customers and vendors to ensure they include fee-shifting agreements. If the firm’s client had to pay the attorney’s fees and costs associated with defending this matter, the monetary judgment would have been greatly depleted after paying for attorney’s fees and costs. A fee-shifting agreement will ensure your victory is a true monetary win rather than a victory that just covers the costs associated with defending your case.