Author: Katherine A. Isard
A recent headline caught my eye: despite winning a long-running legal dispute over royalties against Sonny Bono’s widow, Cher was ordered to pay more than $1 million in her own legal fees. For non-lawyers, that may seem surprising. If you win, shouldn’t the other side have to pay your lawyers? Not necessarily.
In the United States, we generally follow what’s known as the “American Rule.” Simply put, each side typically pays its own attorneys’ fees, whether they win or lose. There are exceptions, of course. A contract may provide for fee-shifting, or a statute may allow the prevailing party to recover fees. But absent an exception, victory in court does not automatically come with a reimbursement check for legal expenses.
The Cher case is a timely reminder of an important reality: litigation costs matter just as much as the merits of the case.
When businesses and individuals evaluate a potential lawsuit, the questions should not be limited to: Can I win? They should also include:
- What will it cost to get to a win?
- Is the potential recovery worth the expense?
- Is there a contractual or statutory basis to recover attorneys’ fees?
- Would an early settlement produce a better overall result?
As litigators, we spend a lot of time discussing legal rights and legal strategy. Equally important is understanding the economics of a dispute. Sometimes the best outcome is not the biggest courtroom victory, but the one that makes the most practical and financial sense.
Or, as Cher’s experience illustrates: sometimes you can win the case and still write a very large check.
Whether you are facing a complex business dispute, employment matter, commercial real estate issue, or need guidance on contracts and corporate transactions, Katherine A. Isard provides strategic, practical legal counsel tailored to your goals. Contact Katherine today to discuss your legal needs at [email protected], visit macelree.com/contact-us, or call 610-436-0100.
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