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The American Rule for Payment of Attorney's Fees

By Doug Cornelius

Coming out of the Court of Appeals of Tennessee at Nashville is a decision on whether the phrase "cost and expenses" in enforcing a declaration of easements and restrictions includes the recovery of attorneys' fees. The court says NO.Cracker Barrel sued their neighbor alleging that the neighbor's plan to expand their building violated the declaration of reciprocal rights and easement and restrictive covenant. This declaration governed the use of the Cracker Barrel property and the neighbor's property. Cracker Barrel ended up winning. The provision in the declaration stated: "All costs and expenses of any suit or proceeding shall be assessed against the defaulting party."The Tennessee Court pointed out that Tennessee "follows the 'American Rule' which provides that litigants must pay their own attorney's fees unless there is a statute or contract providing otherwise...continue to full post

Full post as published by Real Estate Space on March 06, 2008 (boomark / email).