Can I recover attorney’s fees if I win a collection defense lawsuit?
Yes, it is possible to recover attorney’s fees in a collection defense lawsuit if you win. In New York, a potential plaintiff can be awarded attorney’s fees if either his/her legal agreement states that the winning party “shall” be awarded reasonable attorney’s fees or if the party claiming fees can prove that the opposing party “acted frivolously, unreasonably, or without any basis in law or equity.” It is important to note that the collection defense agreement should have an attorney’s fees clause in order to be eligible for fees. In some cases, if the defendant wins the lawsuit, he/she may even be awarded fees for time that spent in court defending the case. In New York, the court will generally review three factors to determine whether a winning party is entitled to recover attorney’s fees: (1) the amount of attorney’s fees that the losing party has accrued; (2) the length of time the case was pursued; and (3) the complexity of the case. In addition, the court will review the prevailing parties’ legal team and experience in collection defense law when allocating attorney’s fees. For instance, a collection defense attorney with more experience in this area of law may be entitled to a higher fee than a lawyer with less experience. Ultimately, the decision to award attorney’s fees depends upon the specific facts of the case and the court’s discretion. Generally speaking, the winning party will have to demonstrate that he or she is entitled to reasonable attorney’s fees before the court will award such fees.
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