Attorney’s Fees / Prevailing Party Clause Explained

Plain-English Explanation

An "Attorney's Fees / Prevailing Party" clause in a lease is about who pays for legal costs if there's a dispute. If you and your landlord end up in court over something related to your lease, this clause decides who covers the lawyer bills. Usually, it says that the "prevailing party," or the person who wins the case, gets their attorney's fees paid by the other side.

This means if you win the case, your landlord might have to pay your legal costs. But if the landlord wins, you might have to pay theirs. It's like a rule that says the loser pays the winner's lawyer fees.

The idea is to make sure that the person who was right in the dispute doesn't end up with a big legal bill just because they had to go to court to prove their point.

Why This Clause Exists

This clause exists to encourage fair play and discourage people from filing lawsuits without a good reason. If someone knows they might have to pay the other person's legal fees if they lose, they might think twice before taking the issue to court.

For landlords, this clause can help protect against tenants who might want to sue over small issues. For tenants, it can provide some security knowing that if they have a legitimate complaint and win, they won't be stuck with high legal costs.

Common Risks to Watch For

• The clause may not clearly define what "prevailing party" means.
• It could be one-sided, favoring the landlord more than the tenant.
• There may be surprise triggers that make you responsible for fees even if you don't go to court.
• The clause might not specify what types of legal costs are covered.
• It could apply to disputes that seem unrelated to the lease.

Example in Plain English

Imagine you have a dispute with your landlord about a repair that wasn't made. You take the issue to court, and the judge decides in your favor. Because of the Attorney's Fees / Prevailing Party clause, your landlord has to pay for your attorney's fees. This means you don't have to worry about covering those costs yourself, as the clause ensures the losing party pays.

When This Clause Causes Issues

• If the clause is vague, both parties might disagree on who the "prevailing party" is.
• Tenants might be surprised to learn they owe fees even if they didn't start the legal action.
• It can cause problems if the legal costs are much higher than expected, leading to financial strain.

What to Do Before You Sign

• Ask whether the clause clearly defines "prevailing party."
• Find out if the clause is balanced or favors one party over the other.
• Check if there are any hidden triggers for paying attorney's fees.
• Ask what types of legal costs are covered under the clause.
• Consider if the clause applies to all disputes or only specific ones.