Damages and Valuation
Damages Doctrines
Under the American Rule each party bears its own fees absent a statute, contract, or recognized exception. Fee-shifting statutes commonly favor prevailing plaintiffs in civil rights, consumer, and employment contexts.
Some provisions are bilateral while others are one-way.
Alternative Names:
Attorney Fee Shifting, Fee-Shifting Statute
Why it Matters?
One-way fee shifting favoring plaintiffs changes settlement economics fundamentally, since a modest damages claim carries fee exposure that can exceed the underlying value many times over. Early resolution is frequently the economically rational response regardless of the merits, which is the effect these statutes were designed to produce. Offer of judgment provisions provide a partial counterweight by shifting post-offer costs.
Frequently Confused with
Related terms
Frequently asked questions
Why does one-way fee shifting change settlement economics?
What provides a counterweight?
