Can a debtor be forced to pay a creditor’s costs and attorney’s fees incurred in litigation?
That’s a common question and the answer is yes and no. Under Florida law, costs are recoverable to the prevailing party; however, only taxable costs are recoverable. Not all litigation cost is taxable and, therefore, recoverable.
With regard to the recovery of attorney’s fees, under Florida law, a party is only entitled to recover attorney’s fees if there is a provision in a contract establishing that entitlement or if there is a statute establishing that entitlement. There are other mechanisms available in civil litigation to attempt to establish the right to recover attorney’s fees. One is a proposal for settlement, in which case a party makes a proposal.
If that proposal is not accepted and the proposing party prevails in the action in at least a percentage of 25% or more of the amount offered, the party may be entitled to recover attorney’s fees under that circumstance. Now, recovery of attorney’s fees means attorney’s fees are awarded on a piece of paper called a judgement. Collection of the amounts awarded is a separate matter all together.
Mediation FAQ
- Are there alternatives to going to court to resolve business disputes?
- Are there any procedures available to secure assets of a debtor before obtaining a judgment?
- Can a debtor be forced to pay a creditor’s costs and attorney’s fees incurred in litigation
- I have customers who defaulted on payment. Can I sue them?
- If both lawyers are settlement minded, why should we spend money for yet another professional
- What does the mediation process typically look like?
- What does the mediator do?
- What is mediation?
- What makes you the right mediator for me?
- What should I look for in a mediator?
- Why does experience matter when hiring a mediator?
- How is the mediator paid?