Is a clause that states "if legal action brought, prevailing party to be reimbursed all costs", a standard clause?
Question Details:
Asked to sign a property damage release which has this clause "In the event any party or parties shall be forced to bring any legal action to protect or defend its or their rights hereunder, then the prevailing party or parties in such proceeding shall be entitled to reimbursement from the non-prevailing party or parties of all fees, costs and other expenses (including, without limitation, the reasonable expenses of its or their outside attorneys) in bringing or defending against such action." Is this a standard release clause or is reimbursement of costs something the courts decide?
Many types of agreements typically contain similar clauses regarding reimbursement of court costs, attorney fees, etc. A court will uphold these costs if they (and the agreement) are legally recognized and enforceable under state law.
