What is the American Rule on attorney fees?
Under the American Rule, each party pays its own attorney fees regardless of who wins the case. This is the default in US civil litigation and contrasts sharply with Canada and England, where the losing party typically pays a portion of the winner's fees.
When can the loser be ordered to pay attorney fees in the US?
Fee shifting applies only through exceptions: a contract with a prevailing-party fee clause, a fee-shifting statute (civil rights, consumer protection, some employment and antitrust laws), or sanctions for bad-faith litigation. Absent one of these, each side bears its own fees.
What costs can a prevailing party recover?
Even under the American Rule, a prevailing party can usually recover statutory 'costs' such as filing fees, service fees, transcript costs, and certain witness fees under FRCP 54(d) and 28 U.S.C. 1920. These are much narrower than attorney fees and typically total a small fraction of the litigation spend.
How much does civil litigation cost in the US?
Costs vary widely by complexity and venue. A case litigated through discovery commonly runs tens of thousands of dollars; a full jury trial can reach six figures. Because discovery is the most expensive phase, most cases settle before trial to control cost and risk.