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Legal question about liability waivers


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Another question.

If you bring a suit and you loose could you be liable for the defendent's legal fees? Especially if the suit is found to be frivolous?

Thanks

Dolomite

Well, until a few days ago, the answer was "no." However, the Tennessee legislature recently passed a "loser pays" rule that has made this a big issue. But, as I understand it, the rule only applies if the case is dismissed for "failure to state a claim." That means that the judge found that the lawsuit had no basis in the law. In that case, the plaintiff whose case has been dismissed can be charged the reasonable and necessary litigation fees (including attorneys' fees) up to $10,000.

This is not the norm in the United States. Typically, there isn't a "loser pays" rule. This is referred to as the "American Rule," as opposed to the "English Rule" which is a "loser pays" rule. The American court system has always viewed the "loser pays" rule as a denial of access to the courts. So, we have purposefully refrained from using the "loser pays" rule in most cases. However, Tennessee (as part of "tort reform") has adopted a "loser pays" rule, to some degree. Also, there are some statutes (both in other states and federally) that provide for a "loser pays" provision.

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