Question

Should defendants that lose cases and plaintiffs that do not win cases have to pay the other side's legal expenses? What would be the consequences of such a rule?

Answer 1

No, in general, according to the American rule, the plaintiff or the defendant who loses the cases is not required to pay the attorney fees of the other party. This is to encourage the individuals to file a lawsuit if they wish to without the fear of additional fees.

Exceptions:

1. If the contract between two business entities requires a party to do this, then the party who loses is bound by the contract to pay the attorney fees. However, this exception is also subject to the judge's decision in ensuring fairness and justice.
2. In cases where there is a statue that requires them to pay the attorney fees. (discrimination cases or if a government body is involved).

Consequences of such a rule:

If the losing parties were required to pay the attorney fees, this would prevent many individuals from filing lawsuits against the other. The parties that cannot afford to pay might file for bankruptcy through their attorney. It would be unfair in certain circumstances if the parties are equally guilty and one party loses.

It is important for a party to feel secure about filing cases without the fear of costs that they would incur through attorney fees. If this rule were imposed, the worrying costs would affect parties that have a low income. it would also discourage parties that wrongly accuse the defendant of a crime and file lawsuits against them.