Anderson Law Offices

No Attorney's Fees Allowed in Commercial Litigation Case

02/13/06

    A cleaning service sued an apartment management company for fees

owed under a contract that provided the defendant was responsible to

the plaintiff for "all collection costs."  An appeals court in Illinois

a few weeks ago held that this language did NOT entitle the cleaning

service to attorney's fees. Negro Nest LLC v. Mid-Northern Management

(December 1, 2005).

    Illinois follows the "American Rule" in litigation, meaning that each

party pays its own lawyer's fees. One exception is when the

statute involved - such as in an employment discrimination case - shifts the

duty to pay the lawyer to the employer if the plaintiff wins.

Another exception, applicable in cases like Negro Nest, is a contract

provision clearly shifting the fees to the defendant.

    The court held the attorney's fees provisions should be strictly construed,

and that "responsible for all collection costs" was too imprecise to be

construed as requiring Mid-Northern to cover Negro's fees.