Opinion ID: 2259371
Heading Depth: 1
Heading Rank: 2

Heading: General Principles of Fee Shifting

Text: Since the United States Supreme Court disallowed an award of attorneys' fees to the winning party in a 1796 admiralty matter, [20] the courts of this nation have generally followed what is commonly referred to as the American Rule. Under the American Rule, absent express statutory language to the contrary, each party is normally obliged to pay only his or her own attorneys' fees, whatever the outcome of the litigation. [21] This stands in stark contrast to the English Rule, practiced in most other nations, where the loser of a litigated matter usually must pay the legal expenses of the victorious party. [22] The courts of this nation, including this Court, have recognized several exceptions to the American Rule. The relevant one for this case is the bad faith exception. The United States Supreme Court has used the bad faith exception to the American Rule to uphold the award of attorneys fees. [23] This Court has also previously accepted bad faith conduct of a party to the litigation as a valid exception to the American Rule. [24] Although there is no single definition of bad faith conduct, courts have found bad faith where parties have unnecessarily prolonged or delayed litigation, [25] falsified records [26] or knowingly asserted frivolous claims. [27]