Also known as: legal expense · legal costs · attorneys' fees
Written by attorneys · grounded in primary & secondary sources — see below
Reasonable attorney's fees and other legal costs incurred by a secured party in retaking, holding, preparing for disposition, processing, and disposing of collateral. These expenses are recoverable from the proceeds of disposition to the extent provided by agreement and not prohibited by law.
Lighthouse Shipping held a security interest in equipment owned by a defaulting debtor. After repossessing the collateral, Lighthouse incurred reasonable attorney's fees to prepare the equipment for sale and conduct the disposition. The proceeds were applied first to those legal expenses before satisfying the underlying obligation.
Lars Lindstrom sued his insurer after it refused to defend a liability claim. The court held the insurer liable for the full judgment and the legal expenses Lindstrom incurred in establishing coverage, because the refusal breached the duty to defend in good faith.
Select any source to read its text and confirm it supports the definition.
Lena Lawson purchased property subject to a mortgage held by First Western Bank. The bank failed to disclose material defects and incurred legal expenses defending its position in foreclosure. The court required the bank to absorb those expenses rather than shifting them to the nonassuming transferee.
Levi Lowe, a defendant in a multistate insurance antitrust action, sought recovery of legal expenses after prevailing on key issues. The court considered whether the expenses qualified as recoverable costs under the applicable federal statutes governing the litigation.
Liam Larson prevailed on a RICO claim against Imrex Co. and petitioned for an award of legal expenses incurred in proving the predicate acts. The court examined whether the expenses were sufficiently tied to the successful prosecution of the federal claim.
Leonard Lowe engaged in bad-faith conduct during a commercial dispute with NASCO, Inc. The court imposed sanctions requiring Lowe to pay the opposing party's reasonable legal expenses caused by the misconduct.
A secured party may recover reasonable expenses of retaking, holding, preparing for disposition, processing, and disposing of collateral from the proceeds. Attorney's fees and legal expenses are also recoverable to the extent the security agreement provides for them and the law permits.
Supporting sources
Yes. In the ordinary course of its activities, a limited partnership may advance reasonable expenses, including attorneys' fees and costs, incurred by a person in connection with a claim arising from the person's capacity as a general partner, provided the person promises to repay if ultimately not entitled to indemnification.
Supporting sources
Accrued interest, collection and foreclosure costs, and attorneys' fees may be added to the secured balance if the parties have agreed, even if doing so causes the total to exceed the stated maximum principal amount.
Supporting sources
In a judicial proceeding involving the administration of a trust, the court may award costs and expenses, including reasonable attorneys' fees, to any party as justice and equity require, to be paid by another party or from the trust.
Supporting sources
…incorporated in California and has its principal place of business in Phoenix, Ariz. [^maj-2]: A judgment of $13,146,090 plus attorneys' fees was entered against Greyhound in Mt. Hood Stages, Inc. v. Greyhound Corp. , 1972-3 Trade Cas. ¶ 74,824, aff'd, F. 2d (CA9 1977); App. 10. [^maj-3]: See United States v.…