Wednesday, March 5, 2008

American Rule

A contract contained a provision that "[a]ll costs and expenses of any suit or proceeding shall be assessed against the defaulting party" was not broad enough to encompass recovery of attorney fees, according to a decision of the Court of Appeals of Tennessee. A dissent would find that the language would permit such fees to be recovered (the majority's holding was "too strict a construction of the contract exception to the American Rule"). (Mike Frisch)

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