Fee Ruling reasons
by Robert Hedges ©


John Stossel publicized that he believes that there should be a law passed to make "loser pays" the law in the US legal system. The US has what is called the American Common Law Rule. Each litigant pays his own attorney.
Pro Se litigants do not get a fee. Lawyers cannot go into business suing persons for themselves exclusively.
There are more issues in this category than meet the eye. The Yale Law Professor who was interviewed, (with all due respect) has not clarified the issues, nor described any specific solution which he may espouse.

The United States has a fee law already. It is FRCP 11, or in Kentucky, which adopted the Rules of Civil Procedure it is CR 11.
If a case or pleading is frivolous, sanction is mandated against the party who filed it. The sanction can be a reasonable fee ruling.
Thus a frivolous move, either part of a case or the entire case may be ruled subject to a "loser pays" fee ruling.

Kentucky has a second mandated fee rule CR 36. and CR 37.01 d(i) & d(ii) (?) which says that any true factual event disputed by any party is subject to a cost ruling. Thus the party who stalls, lies, deceives, prevaricates, and tries to avoid the discovery of the facts, (fact-finders seek facts, be they a jury or the judge) may be charged for wasting the court's and the opposing litigant's time.

Federal Civil Rights cases are by statute a "loser pays" cases. Various states have statutes which mandates "loser pays", but on a case type by case-type basis.

It is patently unfair to be threatened with a "loser pays" adverse-fee ruling in every type and each category of cases. Estate disputes are common, and the litigant pays his own lawyer, regardless of the outcome, which encourages the litigant to settle, even if the lawyer is not thus encouraged to recommend settlement.

The Bar Ethics rules should be written to encourage lawyers not to pettifog, by penalizing them for such ill advised behavior. The lawyer must tell his client that he has no case to present, rather than be allowed to continue to drag out a case and charge a client a fee, when he alone (as the hired expert) knows that the law is against his position, and thus he is really trying to "stir settled points of law" ( a rule violation) or not making a "good faith effort" to change the law, after research and much thought ( a rule violation).

The lawyer must be required to pay the adverse fee rather than the litigant, who is not presumed to know the law, nor charging someone for services based upon alleged skills and knowledge.

The litigant should not be penalized by a lack of knowledge of law, because he is paying an alleged expert for the skill. The lawyer should be responsible for the law, and the penalty for a rule violation. The actual litigant is the person who would presumably decide to settle out of court. The litigant, faced with a prospect of "loser pays" would use the courts to harass as a plaintiff, against a defendant who could neither avoid the suit, nor protect himself from the adverse fee ruling. Divorce fee determination would be by who could get to the courthouse first and thus be plaintiff.

Worse still the unfortunate litigant could be bankrupted by bad judgments, which would all carry a "loser pays fee penalty" even though the litigant were an innocent defendant, like I am. See my series -

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Last modified: January 1996