Legal Question in Construction Law in Illinois

Hi-

I have a question regarding construction contracts. Is it legal to say, "In case of lawsuit regarding unpaid fee, signee agrees to pay attorney fees"? I noticed contention from a couple clients and want to be sure I am actually following the law in this respect, or if, as mentioned, this is just contention and strife coming from clients.

Thank you,

Joanna


Asked on 6/03/14, 3:25 pm

1 Answer from Attorneys

There is nothing illegal about putting a provision in a contract that says the client has to pay your attorney's fees in case you sue for your fees. But the real complaint is -- what if the client wins? Today many contracts have a "prevailing party" rule, which means whoever "wins" has their attorney fees paid by the party who loses. The problem with construction contracts, is that at the end of a job in particular, you can say $X is owed, and the client can argue that $Y is owed, and if you can't resolve it you have to lien the job and sue to foreclose. The mechanic's lien statute allows attorney fees if you win too. So ultimately it will be a matter of negotiation. HOWEVER, some judges say if you put a provision in that says you get your fees no matter what and then you lose, then the judge will apply that in reverse and make you pay, OR will not enforce it as unfair if you lose.

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Answered on 6/04/14, 8:15 am


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