Archive for September, 2008

Should you Use an Attorney’s Fee Clause

Most “standard” real estate contracts and leases contain provisions that state something to the effect, “If there is any dispute as to the agreement, the winning party is entitled to attorney’s fees.” Is this a good idea?

Well, yes and no. First, understand that attorney’s fees are generally not awarded by the court to the winning party in a lawsuit. There must be either a specific statutory provision or a clause in the disputed agreement that calls for attorney’s fees. In addition, a court may award attorney’s fees where there is “bad faith” on the part of one of the litigants, but judges rarely enforce this rule.

If you have to sue another party cheap Acomplia to a lease or contract for $100, it hardly seems worth the effort if you have to pay your attorney $2,500 to file the lawsuit. In such cases, the opposing party may thumb his nose at you and say, “so sue me”. The court system is very unfair to the poor in this regard. However, if you are the potential defendant, it works in your favor if someone is thinking of suing you for some bogus reason and you know that they can’t afford an attorney.

So, should you always insert an attorney’s fee clause in every contract or lease that you sign? Well, that depends on whether such a clause inures to your benefit. For example, if you are a landlord, chances are you will be suing your tenant for non-performance of the lease, not vice-versa. So, having the ability to get attorney’s fees if you win is to your benefit. Of course, this may be futile, since any judgment may be uncollectible, whether for $100 or $10,000. But, if you think you can collect a judgment, go ahead and put the clause in your lease.

Another example might be a purchase contract with a seller in foreclosure. Suppose you have an agreement to buy a property from a seller who is near insolvency. If he breaches the agreement, you can sue, but what will you get? On the other hand, if he can convince a court that YOU are in breach, you could lose and end up paying HIS attorney’s fees. Thus, you can see how an attorney’s fee clause may work against you. If you get into a dispute with a seller or buyer and they cannot afford an attorney, you reduce your risk if something goes bad. Remember, whether you are right or wrong in your actions involving a real estate deal, it’s what is proven in court that matters. Having plenty of trial experience, I can tell you that going to court is a gamble – sometimes you win, sometimes you lose, and truth and justice have little to do with it.

Finally, some agreements will state that if one party must enforce the agreement in court (e.g., the landlord in a lease), the landlord is entitled to lawyer fees. Many courts will apply the rules in reverse, even if the agreement doesn’t explicitly state. So, you cannot necessarily limit attorney’s fee if one party wins but not the other.

As with any transaction, you could consult with an attorney before drafting any agreement you are uncertain of.

Click Here for more info for Should You Use an Attorney’s Fee Clause

Are you looking for a lawyer? Using the internet to find one? Beware of websites that say they will help you locate, evaluate, and choose a lawyer. These sites are not always what they appear to be. They are not a public service. More often than not these sites are simply paid advertising spots.

There are two basic categories of attorney finder websites. They are directory sites and referral sites.

The directory sites are basically an online version of the yellow pages where attorneys have paid for a listing in the directory. Typically, the more money that is paid by the attorney the bigger the ad. More money also means a higher rank in the directory, more times the ad will be presented, etc. The directory offers each listing and you pick the lawyer to contact.

Referral sites gather your information (name, number, case specifics, etc.) and then send it to an attorney who will contact you. The attorney has also paid for this service. The difference is that the attorney is paying to get a case lead. When you fill out the online form by giving information about your case, the information is given to the next lawyer on the list. With referral sites, the lawyer is often paying to get a certain number of leads per month. Rather than being routed to the attorney that can best meet your needs you are simply put in touch with the next attorney in line.

Whether the attorney is listed in a directory or referral sit, in both cases the attorney is paying for advertising. This is important to understand because the attorney may not have much if any experience in the area of law that pertains to your case. Many times the attorney who pays for this type of advertising may not have even taken your type of case all the way to trial. Sometimes out-of-state attorneys will use a directory or referral site to gather leads and then refer them to an in-state attorney for a referral or broker fee.

Also, beware of those websites that claim that the attorney has been prescreened or that the attorney belongs in their network. This just means that the lawyer was able to pay the advertising fee. The term prescreened attorney usually means that the site has verified that the attorney is licensed to practice law, but not necessarily that the attorney is experienced to handle your type of case.

There is actually a subcategory of the referral site. I call them referral firms. These are sites that appear to promote a lawyer or a law firm. But behind the scene these sites are just another type of referral site where the attorney has paid a hefty fee to be promoted. You might have seen some television spots for these lawyers or firms. Again, they take your call or your incoming email and then route it to someone or some firm that is next on the list to get leads. Many times the attorney is not even licensed to practice law in your state. In some cases they associate with a local firm—but it still is not the firm that you thought you were contacting or hiring.

Some of the key phrases that indicate that you are looking at a directory or referral site are as follows: -free attorney finder services -helps you easily find a lawyer in your area based on location and specialty -find a lawyer cheap drugs near you -law firm directories -access to information, news, articles and attorney profiles -find, research, screen and contact a lawyer -Review lawyer profiles and information about individual law firms to identify the best lawyer to fit your needs

You are the only person who should be choosing a lawyer to represent you. Legal matters, especially personal injury cases, can sometimes (not always) take years to resolve. When you pick a lawyer you are choosing to build a long-term attorney-client relationship with someone who will speak on your behalf. Do not make a hasty decision while visiting a website late one night.

Do your homework, visit websites, read articles, review resumes, watch videos, talk to friends, talk other family members and, most importantly, meet with several lawyers in their offices. Ask them questions, about their experience, track record, etc. Listen to what they have to say and judge for yourself.

Good luck.

Powered by Yahoo! Answers