Source: http://www.jdporterlaw.com/285-2/attorneys-fees-civil-lawsuits-denver-colorado-courts/
Timestamp: 2019-04-21 03:05:18+00:00

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In civil litigation, parties frequently are curious about being reimbursed their attorneys’ fees, especially if they end up as the prevailing party. However, U.S. courts abide by the “American Rule” meaning that each party is responsible for paying their own attorneys’ fees unless the law provides otherwise. In other words, the default rule in civil litigation in U.S. courts is that attorneys’ fees will not be awarded to either side. Nonetheless, despite that general rule, attorneys’ fees can be awarded under certain circumstances in Colorado and Denver courts.
A common circumstance where attorneys’ fees can be awarded to the prevailing party is in a contract dispute where the contract provides for an award of attorneys’ fees. This is often known as a “fee-shifting provision” and is frequently used in modern contracts.
Practically speaking, almost all modern contracts contain some sort of fee-shifting provision. Examples of common contracts that frequently include these provisions are lease contracts, contracts for consumer goods, and contracts for services.
Notably, unilateral fee-shifting provisions – that is, where the contract provides that only one party can recover their attorneys’ fees – are [enforceable].
R.S. § 6-1-113 – actions brought under the Colorado Consumer Protections Act for unlawful business practices.
Generally speaking, where a statute does provide for an award of attorneys’ fees to the prevailing party, the award is typically limited to “reasonable attorneys’ fees.” Reasonable attorneys’ fees are generally limited to the market rate of attorneys’ in that area – thus, attorneys’ can’t simply escalate their billing or hourly rate when an award of attorneys’ fees is provided for. A hearing may be necessary or requested to determine or dispute what reasonable attorneys’ fees would be in any particular case.
Under circumstances where the court determines the lawsuit was brought frivolously, vexatiously, or without merit, the court may award attorneys’ fees to the prevailing party. In particular, under C.R.S. § 13-17-102, Colorado and Denver courts are authorized to award attorneys’ fees “in any civil action of any nature . . . against any attorney or party who has brought or defended civil action, either in whole or in part, that the court determines lacked substantial justification.” A claim or defense lacks substantial justification where it is frivolous, groundless, or vexatious in nature. C.R.S. § 13-17-102(4).
A “frivolous” claim or defense is one where the proponent can present no rational argument based on the evidence or law in support of that claim or defense. Double Oak Constr., L.L.C. v. Cornerstone Dev. Int’l, L.L.C., 97 P.3d 140 (Colo. App. 2003).
In contrast, a “groundless” claim or defense is one where the allegations made are sufficient to survive a motion to dismiss – that is, dismissal in the early stages of the lawsuit – but is not supported by any credible evidence at trial. Wheeler v. T.L. Roofing, Inc., 74 P.3d 499 (Colo. App. 2003).
Additionally, a “vexatious” claim is one brought or maintained in bad faith to annoy or harass and may include conduct that is arbitrary, abusive, stubbornly litigious or disrespectful of truth. Mitchell v. Ryder, 104 P.3d 316 (Colo. App. 2004).
The amount and conditions of any offer of judgment or settlement as related to the amount and conditions of the ultimate relief granted by the court.
Lastly, Colorado statutes provide that in personal injury or tort actions, including actions brought as the result of death or injury to a person, “where any such action is dismissed on motion of the defendant prior to trial under 12(b) of the Colorado Rules of Civil Procedure, such defendant shall have judgment for his reasonably attorney fees in defending the action.” C.R.S. § 13-17-201. Accordingly, where a personal injury action is dismissed under C.R.C.P. 12(b) prior to trial, the defending party is entitled to reasonable attorney’s fees as provided by statute.

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