Weekly Roundup – Attorney Fee Shifting Clause

IF YOUR CUSTOMER FAILS TO PAY YOUR INVOICE AND YOU HIRE A LAWYER TO FILE A COLLECTION LAWSUIT, DO YOU RECOVER YOUR ATTORNEYS’ FEES AND COURT COSTS IF YOU PREVAIL IN COURT?
ANSWER:
NO, unless your security alarm contract contains a properly drafted clause permitting you to recover attorneys’ fees and court costs if you prevail.  This clause is known as an “Attorney Fee Shifting Clause.”  Since attorneys’ fees and court costs are expensive and can easily exceed the unpaid invoice you are seeking to collect in court, we always recommend you include an Attorney Fee Shifting Clause in your security alarm contract.
MICHAEL J. REVNESS, ESQ., is the founder of AlarmLegal.com and a founding partner at the law firm of KURTZ & REVNESS, P.C.  Please contact me at mrevness@kandrlaw.com or 610-688-2855 if I can be of assistance with the drafting security alarm contracts, purchase or sale of security alarm accounts or other related security industry legal services.
This article is for information purposes only and does not constitute, and should not be relied upon as, legal advice.