California Civil Code Section 1717 allows for the collection of attorney's fees if there is a clause in a contract specifying such a provision. The provision, however, cannot be “one-sided,” meaning both the plaintiff and defendant should be able to recover attorney's fees if they win.
Under the “American Rule” each party to a lawsuit is responsible for their own attorney's fees and costs absent a contractual agreement or statutory exception. (Cal. Code Civ.
California Civil Code Section 1717 allows for the collection of attorney's fees if there is a clause in a contract specifying such a provision. The provision, however, cannot be “one-sided,” meaning both the plaintiff and defendant should be able to recover attorney's fees if they win.
Are attorney fees tax deductible in California? Yes, attorney's fees and other litigation costs are tax deductible in California if they were incurred to produce income included in the recipient's gross income.
Attorneys licensed by the State Bar of California take an oath to abide by laws aimed at protecting consumers from unethical lawyers. But sometimes attorneys don't act in the best interests of their clients. Call the State Bar's multilingual Contact Center (800-843-9053) for help.