English rule (legal term)
Encyclopedia
In the field of law and economics
, the English rule (capitalized as English Rule in some jurisdictions) is a rule controlling assessment of attorneys' fees arising out of litigation. The English rule provides that the party who loses in court pays the other party's attorney's fees. The English rule contrasts with the American rule
, under which each party is generally responsible to pay its own attorneys' fees, unless a statute
or contract
provides for that assessment. The rationale for the English rule is that a litigant (whether bringing a claim or defending a claim) is entitled to legal representation and, if successful, should not be left out of pocket by reason of his own legal fees. It should be borne in mind that in virtually all English civil litigation damages are merely compensatory. Nearly every Western democracy, other than the United States, follows the "English rule," which requires the loser of a civil suit to compensate the winner for his or her attorney's fees.
was considered in Texas during the 2011 legislative session. Texas governor Rick Perry
called in his state of the state address for a one-way version of the English rule which would apply only to those who initiate a suit, the plaintiff.
Law and economics
The economic analysis of law is an analysis of law applying methods of economics. Economic concepts are used to explain the effects of laws, to assess which legal rules are economically efficient, and to predict which legal rules will be promulgated.-Relationship to other disciplines and...
, the English rule (capitalized as English Rule in some jurisdictions) is a rule controlling assessment of attorneys' fees arising out of litigation. The English rule provides that the party who loses in court pays the other party's attorney's fees. The English rule contrasts with the American rule
American rule
"American rule" may refer to one of several concepts in law, in contrast to the English rule:* The American rule for successive assignments of rights* The American rule for attorney's fees...
, under which each party is generally responsible to pay its own attorneys' fees, unless a statute
Statute
A statute is a formal written enactment of a legislative authority that governs a state, city, or county. Typically, statutes command or prohibit something, or declare policy. The word is often used to distinguish law made by legislative bodies from case law, decided by courts, and regulations...
or contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
provides for that assessment. The rationale for the English rule is that a litigant (whether bringing a claim or defending a claim) is entitled to legal representation and, if successful, should not be left out of pocket by reason of his own legal fees. It should be borne in mind that in virtually all English civil litigation damages are merely compensatory. Nearly every Western democracy, other than the United States, follows the "English rule," which requires the loser of a civil suit to compensate the winner for his or her attorney's fees.
United States jurisdictions
In the United States the "American rule" is generally followed, each party bearing its own expense of litigation. Adaption of the English rule as an aspect of tort reformTort reform
Tort reform refers to proposed changes in common law civil justice systems that would reduce tort litigation or damages. Tort actions are civil common law claims first created in the English commonwealth system as a non-legislative means for compensating wrongs and harm done by one party to...
was considered in Texas during the 2011 legislative session. Texas governor Rick Perry
Rick Perry
James Richard "Rick" Perry is the 47th and current Governor of Texas. A Republican, Perry was elected Lieutenant Governor of Texas in 1998 and assumed the governorship in December 2000 when then-governor George W. Bush resigned to become President of the United States. Perry was elected to full...
called in his state of the state address for a one-way version of the English rule which would apply only to those who initiate a suit, the plaintiff.
External links
- Walter OlsonWalter OlsonWalter K. Olson is an author and blogger who writes mostly about tort reform. Olson is a senior fellow of the Cato Institute, a libertarian think tank in Washington DC. Formerly Olson was associated with the Manhattan Institute in New York City...
, "Loser Pays"