In the process of dispute resolution, the principle that "the losing party needs to pay all reasonable expenses of the winning party" is generally taken for granted by the parties. However, in practical judicial practice, there are still various prerequisites and related points to require the losing party to bear legal fees. This article will sort out the issue of bearing lawyer fees in litigation and arbitration, providing relevant references for the parties to protect their own rights and interests.
The parties have agreed in the contract to bear the legal fees
In the litigation process, if the parties agree in advance in the relevant contract that in the event of a dispute, the losing party shall bear the legal fees of the winning party, and if it does not violate the mandatory provisions of laws and regulations, the court or arbitration tribunal will generally support the reasonable legal fees paid by the winning party for safeguarding their rights.
Therefore, in daily trading processes, prior agreements are of great significance. In the transaction contract, it is recommended that the parties agree in advance on the payment of rights protection fees (lawyer fees). The common terms template is as follows:
(1) "When one party breaches the contract, the costs incurred by the non breaching party in taking protective measures (including but not limited to litigation or arbitration fees, property preservation fees, guarantee fees, lawyer fees, execution fees, evaluation fees, auction fees, announcement fees, appraisal fees, registration fees, and all related expenses) shall be borne by the breaching party."
(2) "The losing party shall bear all litigation costs, arbitration fees, lawyer's fees, preservation fees, preservation guarantee fees, appraisal fees, notarization fees, and other expenses incurred in realizing the rights of the winning party due to the litigation or arbitration of the case."