Attorneys Fees Clauses

"Ordinarily a party may not recover attorney fees unless a statute or contract provision expressly allows such recovery. State Bank of Cokato v. Ziehwein, 510 N.W.2d 268, 270 (Minn.App. 1994); See, Barr/Nelson v. Tonto's, 336 N.W.2d 46, 53 (Minn. 1983). Where loan documents authorize a lender to recover legal expenses associated with collection Minnesota courts will enforce the provision as long as the fees are reasonable. State Bank of Cokato, 510 N.W.2d at 270; See, O'Donnell v. McGee Trucks, Inc., 199 N.W.2d 432, 434-35 (Minn. 1973).

NOTE: There is an exception to the general rule that attorneys' fees are not recoverable absent a specific contract provision or statutory authorization: the exception arises in situations in which the defendant's wrongful act thrusts the plaintiff into litigation with a third person. Langeland v. Farmers State Bank of Trimont, 319 N.W.2d 26, 33 (Minn. 1982); see, also, Signergy Sign Group, Inc. v. Adam, 2002 WL 32442823 (Minn.Dist.Ct.)."

See also, Bolander v. Bolander, 703 N.W.2d 529, 555 (Minn.App. 2005) stating that attorney fees are not recoverable unless authorized by statute or contract. In determining the size of the fee, a district court must consider the "time and effort required, novelty or difficulty of the issues, skill and standing of the attorney, value of the interest involved, results secured at trial, loss of opportunity for other employment, taxed party's ability to pay, customary charges for similar services and certainty of payment." Id.