Attorney Fees Clauses

"Tennessee Statutes are now housed on LexisNexis.

Under the ""American Rule"" it is unlikely to for attorney's fees to be awarded. However, a judge may apportion costs for a frivolous lawsuit under Tenn. Code Ann. § 20-12-119.

Additionally, if a contract at issue provides for attorney's fees, then a court may choose to award them."

Tennessee follows the “American Rule” for the recovery of attorney’s fees in civil actions. To recover attorney’s fees, a party must show: “(1) a contractual or statutory provision creates a right to recover attorney fees; or (2) some other recognized exception to the American rule applies, allowing for recovery of such fees in a particular case.” Cracker Barrel Old Country Store, Inc. v. Epperson, 284 S.W.3d 303, 308 (Tenn. 2009).

The Law: Tennessee follows the “American Rule” for the recovery of attorney’s fees in civil actions. To recover attorney’s fees, a party must show: “(1) a contractual or statutory provision creates a right to recover attorney fees; or (2) some other recognized exception to the American rule applies, allowing for recovery of such fees in a particular case.” Cracker Barrel Old Country Store, Inc. v. Epperson, 284 S.W.3d 303, 308 (Tenn. 2009). Discussion: Tennessee’s adherence to the American rule is based on several public policy considerations which reflect “the idea that public policy is best served by litigants bearing their own legal fees regardless of the outcome of the case.” House v. Estate of Edmondson, 245 S.W.3d 372, 377 (Tenn. 2008). In particular, the Tennessee Supreme Court is mindful that: [1] a party should not be penalized for merely bringing or defending a lawsuit; [2] the poor might be unjustly discouraged from instituting actions to vindicate their rights if the penalty for losing included paying the fees of their opponent's lawyer; [3] requiring each party to be responsible for their own legal fees promotes settlement; [4] the time, expense, and difficulty inherent in litigating the appropriate amount of attorney's fees to award would add another layer to the litigation and burden the courts and the parties with ancillary proceedings. Id. In addition to cases in which a “contractual or statutory provision creates a right to recover attorney fees,” Tennessee has recognized only one exception to the American rule. Cracker Barrel Old Country Store, Inc., 284 S.W.3d at 308. This exception is where “a contract specifically or expressly provides for the recovery of attorney fees.” Id. at 309. Tennessee strictly construes contract provisions purporting to specifically or expressly provide for attorney’s fees. “The only way parties to a contract have been able to specifically and expressly create a right to recover attorney fees has been by incorporating the phrase ‘including reasonable attorney fees’ or some other similar, yet equally specific, contractual language.” Id. at 310. Tennessee treats this requirement as a “bright line rule” and will not interpret language, such as “all costs and expenses” to include attorney’s fees. Id. at 309-10. ?