[BROKERDIRT] Statutes: Reciprocal Attorney Fees; a/ka/ Mutual Attorney Fees or Parallel Attorney Fees

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Jack Burton

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Mar 11, 2013, 4:07:54 PM3/11/13
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Does your state have one of these laws?  The laws say that if a contract provides that one party recovers its attorney fees if it prevails in a lawsuit on the contract, then the other party or parties may also recover their reasonable attorney fees if they prevail.

I am trying to help to pass such a law and recall that about a dozen states have such provisions, but have misplaced my notes stating which ones. 

Can you please respond if your state has one, or if your state has another one that accomplishes the same thing in a different way. Citations are desirable but not required. 

The late Pat Randolph gave me the idea for this statute on this list serve back in 2006, when he said that every state ought to have such a law, and I have been working on it ever since.  It is such a good idea that we have had no opposition up until now, but opposition has just arisen, and I need this information to support the bill in the legislature.

Many thanks,

Jack Burton

 

 

John P. Burton
RODEY LAW FIRM jbu...@rodey.com
505.954.3906
315 Paseo de Peralta
Santa Fe, New Mexico 87501
fax: 505.954.3942
Rodey, Dickason, Sloan, Akin & Robb, P.A.
www.rodey.com


Circular 230 Disclosure: Unless otherwise expressly stated, any federal tax advice contained in this email, including any attachment, is not intended or written to be used, and may not be used, for the purpose of (1) avoiding tax-related penalties under the Internal Revenue Code, or (2) promoting, marketing or recommending to another party any tax-related matter addressed in this email or any attachment.

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Michael A. Katz

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Mar 11, 2013, 5:14:26 PM3/11/13
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NY has such a law but I believe that it is limited to residential Landlord / Tenant matters
----- Original Message -----
Sent: Monday, March 11, 2013 4:07 PM
Subject: [BROKERDIRT] Statutes: Reciprocal Attorney Fees; a/ka/ Mutual Attorney Fees or Parallel Attorney Fees

Does your state have one of these laws?  The laws say that if a contract provides that one party recovers its attorney fees if it prevails in a lawsuit on the contract, then the other party or parties may also recover their reasonable attorney fees if they prevail.

I am trying to help to pass such a law and recall that about a dozen states have such provisions, but have misplaced my notes stating which ones. 

Can you please respond if your state has one, or if your state has another one that accomplishes the same thing in a different way. Citations are desirable but not required. 

The late Pat Randolph gave me the idea for this statute on this list serve back in 2006, when he said that every state ought to have such a law, and I have been working on it ever since.  It is such a good idea that we have had no opposition up until now, but opposition has just arisen, and I need this information to support the bill in the legislature.

Many thanks,

Jack Burton

 

 

John P. Burton
RODEY LAW FIRM jbu...@rodey.com
505.954.3906
315 Paseo de Peralta
Santa Fe, New Mexico 87501
fax: 505.954.3942
Rodey, Dickason, Sloan, Akin & Robb, P.A.
www.rodey.com


Circular 230 Disclosure: Unless otherwise expressly stated, any federal tax advice contained in this email, including any attachment, is not intended or written to be used, and may not be used, for the purpose of (1) avoiding tax-related penalties under the Internal Revenue Code, or (2) promoting, marketing or recommending to another party any tax-related matter addressed in this email or any attachment.

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Dati, James

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Mar 11, 2013, 6:21:10 PM3/11/13
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Florida Statutes, Section 57.105 (7) provides:

If a contract contains a provision allowing attorney’s fees to a party when he or she is required to take any action to enforce the contract, the court may also allow reasonable attorney’s fees to the other party when that party prevails in any action, whether as plaintiff or defendant, with respect to the contract. This subsection applies to any contract entered into on or after October 1, 1988.

 

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Business and Real Estate Transactional Law

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From: BROKERDIRT - Real Estate Brokers Discussion Group [mailto:BROKE...@LISTSERV.UMKC.EDU] On Behalf Of Jack Burton
Sent: Monday, March 11, 2013 4:08 PM
To: BROKE...@LISTSERV.UMKC.EDU
Subject: [BROKERDIRT] Statutes: Reciprocal Attorney Fees; a/ka/ Mutual Attorney Fees or Parallel Attorney Fees

 

Does your state have one of these laws?  The laws say that if a contract provides that one party recovers its attorney fees if it prevails in a lawsuit on the contract, then the other party or parties may also recover their reasonable attorney fees if they prevail.

I am trying to help to pass such a law and recall that about a dozen states have such provisions, but have misplaced my notes stating which ones. 

Can you please respond if your state has one, or if your state has another one that accomplishes the same thing in a different way. Citations are desirable but not required. 

The late Pat Randolph gave me the idea for this statute on this list serve back in 2006, when he said that every state ought to have such a law, and I have been working on it ever since.  It is such a good idea that we have had no opposition up until now, but opposition has just arisen, and I need this information to support the bill in the legislature.

Many thanks,

Jack Burton

 

 

John P. Burton

RODEY LAW FIRM

jbu...@rodey.com
505.954.3906

315 Paseo de Peralta
Santa Fe, New Mexico 87501
fax: 505.954.3942

Rodey, Dickason, Sloan, Akin & Robb, P.A.
www.rodey.com

 


Circular 230 Disclosure: Unless otherwise expressly stated, any federal tax advice contained in this email, including any attachment, is not intended or written to be used, and may not be used, for the purpose of (1) avoiding tax-related penalties under the Internal Revenue Code, or (2) promoting, marketing or recommending to another party any tax-related matter addressed in this email or any attachment.

This message is confidential and may be protected by the attorney-client privilege.  If you believe that it has been sent to you in error, please reply to the sender that you received the message in error and then delete it. Thank you.


 

 

 

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Steven A. Sokol

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Mar 11, 2013, 8:42:10 PM3/11/13
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California has such a statute.  Civil Code section 1717 provides, in part, as follows:

1717.  (a) In any action on a contract, where the contract specifically provides that attorney's fees and costs, which are incurred to enforce that contract, shall be awarded either to one of the parties or to the prevailing party, then the party who is determined to be the party prevailing on the contract, whether he or she is the party specified in the contract or not, shall be entitled to reasonable attorney's fees in addition to other costs.

   Where a contract provides for attorney's fees, as set forth above, that provision shall be construed as applying to the entire contract, unless each party was represented by counsel in the negotiation and execution of the contract, and the fact of that representation is specified in the contract.

   Reasonable attorney's fees shall be fixed by the court, and shall be an element of the costs of suit.

   Attorney's fees provided for by this section shall not be subject to waiver by the parties to any contract which is entered into after the effective date of this section. Any provision in any such contract which provides for a waiver of attorney's fees is void.  [. . .]

 

Steven A. Sokol

Halling Sokol + Meza LLP

Office (818) 222-4994 / (310) 277-2080

Fax (818) 222-4995 / (310) 277-2084

sso...@hallingsokol.com

 

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Stephen Buehl

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Mar 11, 2013, 9:03:21 PM3/11/13
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Here’s the text of California Civil Code section 1717:

1717.  (a) In any action on a contract, where the contract

specifically provides that attorney's fees and costs, which are

incurred to enforce that contract, shall be awarded either to one of

the parties or to the prevailing party, then the party who is

determined to be the party prevailing on the contract, whether he or

she is the party specified in the contract or not, shall be entitled

to reasonable attorney's fees in addition to other costs.

   Where a contract provides for attorney's fees, as set forth above,

that provision shall be construed as applying to the entire

contract, unless each party was represented by counsel in the

negotiation and execution of the contract, and the fact of that

representation is specified in the contract.

   Reasonable attorney's fees shall be fixed by the court, and shall

be an element of the costs of suit.

   Attorney's fees provided for by this section shall not be subject

to waiver by the parties to any contract which is entered into after

the effective date of this section. Any provision in any such

contract which provides for a waiver of attorney's fees is void.

   (b) (1) The court, upon notice and motion by a party, shall

determine who is the party prevailing on the contract for purposes of

this section, whether or not the suit proceeds to final judgment.

Except as provided in paragraph (2), the party prevailing on the

contract shall be the party who recovered a greater relief in the

action on the contract. The court may also determine that there is no

party prevailing on the contract for purposes of this section.

   (2) Where an action has been voluntarily dismissed or dismissed

pursuant to a settlement of the case, there shall be no prevailing

party for purposes of this section.

   Where the defendant alleges in his or her answer that he or she

tendered to the plaintiff the full amount to which he or she was

entitled, and thereupon deposits in court for the plaintiff, the

amount so tendered, and the allegation is found to be true, then the

defendant is deemed to be a party prevailing on the contract within

the meaning of this section.

   Where a deposit has been made pursuant to this section, the court

shall, on the application of any party to the action, order the

deposit to be invested in an insured, interest-bearing account.

Interest on the amount shall be allocated to the parties in the same

proportion as the original funds are allocated.

   (c) In an action which seeks relief in addition to that based on a

contract, if the party prevailing on the contract has damages

awarded against it on causes of action not on the contract, the

amounts awarded to the party prevailing on the contract under this

section shall be deducted from any damages awarded in favor of the

party who did not prevail on the contract. If the amount awarded

under this section exceeds the amount of damages awarded the party

not prevailing on the contract, the net amount shall be awarded the

party prevailing on the contract and judgment may be entered in favor

of the party prevailing on the contract for that net amount.

 

Stephen T. Buehl

Gagen McCoy

1030 Main Street, Suite 212

St. Helena, CA  94574

707-963-0909, phone

707-963-5527, fax

 

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From: BROKERDIRT - Real Estate Brokers Discussion Group [mailto:BROKE...@LISTSERV.UMKC.EDU] On Behalf Of Dati, James


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Benny L. Kass

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Mar 12, 2013, 12:03:32 PM3/12/13
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I have also been trying to get our legislative body (the DC city Council) to enact such a law, and also learned about it from Pat years ago. However, with regard to residential real estate sales contracts, the standard form contract that is used in dc, Maryland and parts of Virginia includes paragraph 21 (see attached)

I would also like to see such a law cover landlord-tenant issues; why should only the landlord get attorney fees? If the tenant prevails, the tenant should get fees

So, would appreciate hearing from other Dirters about this issue and specifically, jack what is the opposition now and where is it coming from

 

Benny Kass

 

From: BROKERDIRT - Real Estate Brokers Discussion Group [mailto:BROKE...@LISTSERV.UMKC.EDU] On Behalf Of Jack Burton
Sent: Monday, March 11, 2013 4:08 PM
To: BROKE...@LISTSERV.UMKC.EDU
Subject: [BROKERDIRT] Statutes: Reciprocal Attorney Fees; a/ka/ Mutual Attorney Fees or Parallel Attorney Fees

 

Does your state have one of these laws?  The laws say that if a contract provides that one party recovers its attorney fees if it prevails in a lawsuit on the contract, then the other party or parties may also recover their reasonable attorney fees if they prevail.

I am trying to help to pass such a law and recall that about a dozen states have such provisions, but have misplaced my notes stating which ones. 

Can you please respond if your state has one, or if your state has another one that accomplishes the same thing in a different way. Citations are desirable but not required. 

The late Pat Randolph gave me the idea for this statute on this list serve back in 2006, when he said that every state ought to have such a law, and I have been working on it ever since.  It is such a good idea that we have had no opposition up until now, but opposition has just arisen, and I need this information to support the bill in the legislature.

Many thanks,

Jack Burton

 

 

John P. Burton

RODEY LAW FIRM

jbu...@rodey.com
505.954.3906

315 Paseo de Peralta
Santa Fe, New Mexico 87501
fax: 505.954.3942

Rodey, Dickason, Sloan, Akin & Robb, P.A.
www.rodey.com

 


Circular 230 Disclosure: Unless otherwise expressly stated, any federal tax advice contained in this email, including any attachment, is not intended or written to be used, and may not be used, for the purpose of (1) avoiding tax-related penalties under the Internal Revenue Code, or (2) promoting, marketing or recommending to another party any tax-related matter addressed in this email or any attachment.

This message is confidential and may be protected by the attorney-client privilege.  If you believe that it has been sent to you in error, please reply to the sender that you received the message in error and then delete it. Thank you.


 

 

 

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1301.Contract of Sale - Regional Sales Contract (revised 1-12).pdf

Jack Burton

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Mar 12, 2013, 1:59:19 PM3/12/13
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Four things:  First, I heard off line from David Ambrose of Oregon who reports:
 
Oregon has such a statute, and from my experience, and my understanding, it has worked well in Oregon for a substantial number of years.  There really hasn't been any challenge to the concept, to my knowledge, and it's really been built in to contract documents prepared for Oregon transactions. Here's the text of the statute:
 
 20.096 Reciprocity of attorney fees and costs in proceedings to enforce contract. (1) In any action or suit in which a claim is made based on a contract that specifically provides that attorney fees and costs incurred to enforce the provisions of the contract shall be awarded to one of the parties, the party that prevails on the claim shall be entitled to reasonable attorney fees in addition to costs and disbursements, without regard to whether the prevailing party is the party specified in the contract and without regard to whether the prevailing party is a party to the contract.
 
 
Second,  I plagiarized our bill from Utah's law, which reads:
 
" 78-27-56.5. Attorney's fees -- Reciprocal rights to recover attorney's fees.

"A court may award costs and attorney's fees to either party that prevails in a civil action based upon any promissory note, written contract, or other writing executed after April 28, 1986, when the provisions of the promissory note, written contract, or other writing allow at least one party to recover attorney's fees. "

Third, the opposition to our bill comes from parties who say that their contracts give them a theoretical right to recover attorney fees, but that, as a practical matter, the courts never award the attorney fees against consumers because the consumers have no money to pay the attorney fees.  The opposition asked that consumers be excluded from the bill, so that the bill would apply only to commercial transactions.  The sponsor refused to do so.  The opposition has threatened to ask the governor to veto the bill if it passes the legislature.

We told the opposition that if they really could not recover their attorney fees, their remedy is to remove the attorney-fee provision from their contracts, not to seek to have the legislation vetoed.  We had already put a one-year delayed effective date on the bill to allow everyone time to get their contracts in order.  We will tell the governor the same thing.

Fourth, Benny, I believe that provisions of either the Oregon or the Utah law would apply to the landlord-tenant situation if there is a written lease that gives the landlord the right to recover its attorney fees.  So would the provisions of the New Mexico bill.

Jack

 

 

John P. Burton
RODEY LAW FIRM jbu...@rodey.com
505.954.3906
315 Paseo de Peralta
Santa Fe, New Mexico 87501
fax: 505.954.3942
Rodey, Dickason, Sloan, Akin & Robb, P.A.
www.rodey.com


Circular 230 Disclosure: Unless otherwise expressly stated, any federal tax advice contained in this email, including any attachment, is not intended or written to be used, and may not be used, for the purpose of (1) avoiding tax-related penalties under the Internal Revenue Code, or (2) promoting, marketing or recommending to another party any tax-related matter addressed in this email or any attachment.

This message is confidential and may be protected by the attorney-client privilege.  If you believe that it has been sent to you in error, please reply to the sender that you received the message in error and then delete it. Thank you.


 
 


From: BROKERDIRT - Real Estate Brokers Discussion Group [mailto:BROKE...@LISTSERV.UMKC.EDU] On Behalf Of Benny L. Kass
Sent: Tuesday, March 12, 2013 10:04 AM
To: BROKE...@LISTSERV.UMKC.EDU
Subject: Re: [BROKERDIRT] Statutes: Reciprocal Attorney Fees; a/ka/ Mutual Attorney Fees or Parallel Attorney Fees

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Marlyn Hawkins

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Mar 12, 2013, 3:03:41 PM3/12/13
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Washington State does:

RCW 4.84.330

Actions on contract or lease which provides that attorneys' fees and costs incurred to enforce provisions be awarded to one of parties — Prevailing party entitled to attorneys' fees — Waiver prohibited.

In any action on a contract or lease entered into after September 21, 1977, where such contract or lease specifically provides that attorneys' fees and costs, which are incurred to enforce the provisions of such contract or lease, shall be awarded to one of the parties, the prevailing party, whether he or she is the party specified in the contract or lease or not, shall be entitled to reasonable attorneys' fees in addition to costs and necessary disbursements.

Attorneys' fees provided for by this section shall not be subject to waiver by the parties to any contract or lease which is entered into after September 21, 1977. Any provision in any such contract or lease which provides for a waiver of attorneys' fees is void.

As used in this section "prevailing party" means the party in whose favor final judgment is rendered.

 

Marlyn K. Hawkins

Barker · Martin, P. S.

(206) 381-9806 x125

From: BROKERDIRT - Real Estate Brokers Discussion Group [mailto:BROKE...@LISTSERV.UMKC.EDU] On Behalf Of Jack Burton
Sent: Monday, March 11, 2013 1:08 PM
To: BROKE...@LISTSERV.UMKC.EDU
Subject: [BROKERDIRT] Statutes: Reciprocal Attorney Fees; a/ka/ Mutual Attorney Fees or Parallel Attorney Fees

 

Does your state have one of these laws?  The laws say that if a contract provides that one party recovers its attorney fees if it prevails in a lawsuit on the contract, then the other party or parties may also recover their reasonable attorney fees if they prevail.

I am trying to help to pass such a law and recall that about a dozen states have such provisions, but have misplaced my notes stating which ones. 

Can you please respond if your state has one, or if your state has another one that accomplishes the same thing in a different way. Citations are desirable but not required. 

The late Pat Randolph gave me the idea for this statute on this list serve back in 2006, when he said that every state ought to have such a law, and I have been working on it ever since.  It is such a good idea that we have had no opposition up until now, but opposition has just arisen, and I need this information to support the bill in the legislature.

Many thanks,

Jack Burton

 

 

John P. Burton

RODEY LAW FIRM

jbu...@rodey.com
505.954.3906

315 Paseo de Peralta
Santa Fe, New Mexico 87501
fax: 505.954.3942

Rodey, Dickason, Sloan, Akin & Robb, P.A.
www.rodey.com

 


Circular 230 Disclosure: Unless otherwise expressly stated, any federal tax advice contained in this email, including any attachment, is not intended or written to be used, and may not be used, for the purpose of (1) avoiding tax-related penalties under the Internal Revenue Code, or (2) promoting, marketing or recommending to another party any tax-related matter addressed in this email or any attachment.

This message is confidential and may be protected by the attorney-client privilege.  If you believe that it has been sent to you in error, please reply to the sender that you received the message in error and then delete it. Thank you.


 

 

 

To add or remove from this mailing list, please go to <http://listserv.umkc.edu/scripts/wa.exe?SUBED1=BROKERDIRT&A=1> or send an email message to the address list...@listserv.umkc.edu, with the text SIGNOFF BROKERDIRT in the body of the message.

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Bob Magill

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Mar 12, 2013, 2:52:16 PM3/12/13
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One of the purposes of such legislation, I would imagine, is  to make sure that when a consumer has a dispute over contracts of adhesion by commercial entities (landlords and others), that those “attorney fee”  clauses aren’t used to bludgeon consumers into giving up out of fear of having to pay their own attorneys if they win but having to pay both their and the other side’s attorneys if they lose --- a no win calculus.

The idea of removing consumers from such legislation would defeat that purpose and thus I suspect that those lobbying for the change are being disingenuous in their description of their reasons.

 

Bob Magill, Jr.

Magill and Rumsey, P.C.

734-995-2500

734-995-4798 (fax)

bma...@magillrumsey.com

www.magillrumsey.com

 

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Benny L. Kass

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Mar 12, 2013, 3:26:20 PM3/12/13
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Thanks lets keep the fight going

Sent from my iPhone
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John L Davidson

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Mar 12, 2013, 7:33:25 PM3/12/13
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Perhaps it would make more sense to prohibit attorneys fee provisions in consumer transactions unless they were freely negotiated.

After all, especially in the land lord tenant area, but also consumer finance, do these provisions actually promote the public interest or do they encourage over use of the courts, bad loans, etc.

Best regards,

John

John L. Davidson

John L. Davidson, PC

13975 Manchester Road

Suite 19

Saint Louis, Missouri 63011

314.725.2898

636.527.9395 facsimile

jldavidson@ att.net

 

Pragmaticam Supra Omnia

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Tom McCarthy

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Mar 12, 2013, 8:34:59 PM3/12/13
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Friends:

Here’s a copy of Arizona’s primary contract action loser pays statute (with a second section providing for recover of fees of document preparers as well as lawyers.  Who says Arizona isn’t on the cutting edge.

Tom McCarthy

Thomas A. McCarthy, Jr.                             Thomas A. McCarthy, Jr., P.C.

5540 West Glendale Avenue, Suite B-103
Glendale, Arizona 85301-2550

Telefax: (623) 931-3737
Telephone: (623) 931-3735

Transactional, Business Organization and Estate Planning Law

12-341.01. Recovery of attorney fees

A. In any contested action arising out of a contract, express or implied, the court may award the successful party reasonable attorney fees. If a written settlement offer is rejected and the judgment finally obtained is equal to or more favorable to the offeror than an offer made in writing to settle any contested action arising out of a contract, the offeror is deemed to be the successful party from the date of the offer and the court may award the successful party reasonable attorney fees. This section shall not be construed as altering, prohibiting or restricting present or future contracts or statutes that may provide for attorney fees.

B. The award of reasonable attorney fees pursuant to this section should be made to mitigate the burden of the expense of litigation to establish a just claim or a just defense. It need not equal or relate to the attorney fees actually paid or contracted, but the award may not exceed the amount paid or agreed to be paid.

C. The court and not a jury shall award reasonable attorney fees under this section.

 

12-341.02. Recovery of legal document preparation fees

The court may award to the prevailing party the cost of document preparation if prepared by a legal document preparer who is certified by the supreme court. The party seeking recovery will file a sworn affidavit of costs with the court.

 

 

 

 

From: BROKERDIRT - Real Estate Brokers Discussion Group [mailto:BROKE...@LISTSERV.UMKC.EDU] On Behalf Of Stephen Buehl
Sent: Monday, March 11, 2013 6:03 PM
To: BROKE...@LISTSERV.UMKC.EDU
Subject: Re: [BROKERDIRT] Statutes: Reciprocal Attorney Fees; a/ka/ Mutual Attorney Fees or Parallel Attorney Fees

 

Here’s the text of California Civil Code section 1717:


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Kaufmann, Roy

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Sep 4, 2013, 3:26:24 AM9/4/13
to BROKE...@listserv.umkc.edu

An update on Benny’s point about landlord-tenant law.  The DC Ct App recently reminded the Bar that clauses in residential leases that attempt to shift atty’s fees to tenants will not be enforced.

 

Roy Kaufmann

 

From: BROKERDIRT - Real Estate Brokers Discussion Group [mailto:BROKE...@LISTSERV.UMKC.EDU] On Behalf Of Benny L. Kass


Sent: Tuesday, March 12, 2013 12:04 PM
To: BROKE...@LISTSERV.UMKC.EDU


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Jack Burton

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Sep 6, 2013, 5:36:55 PM9/6/13
to BROKE...@listserv.umkc.edu
Another update:  The New Mexico legislature passed a reciprocal attorney fee statute applicable to all written contracts.  It was pocket vetoed by the governor.


From: BROKERDIRT - Real Estate Brokers Discussion Group [mailto:BROKE...@LISTSERV.UMKC.EDU] On Behalf Of Kaufmann, Roy
Sent: Wednesday, September 04, 2013 1:26 AM

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