Prevailing-Party Attorneys' Fees
The loser of a dispute pays the winner's legal fees.
What it means
A prevailing-party attorneys' fees clause requires the losing side of a dispute to pay the winning side's reasonable legal fees and costs. Without such a clause (or a statute providing one), the default American rule is that each side pays its own lawyers no matter who wins. In some states, a one-way fees clause is treated as mutual by statute; the details vary by state.
Why it matters before you sign
This clause changes the math of every potential dispute — it makes strong claims more worth pursuing and weak ones more dangerous to bring, for both sides equally.
In a contract, it looks like this
Because the subcontract had a prevailing-party fees clause, the sub recovered its attorneys' fees along with the unpaid balance.
This definition is a general, educational explanation — not legal advice. XOsign provides AI-assisted document tools and does not provide legal advice; consider consulting a qualified attorney for guidance on your specific situation. Requirements vary by state.
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