In Utah, Attorney’s Fees Are Valid, Consequential Damages for Another’s Negligence If It Causes You to Be Sued
We all know that the ‘American Rule’ applies to bar an award for attorney’s fees unless otherwise permitted by statute or contract. Utah recognizes an exception to the American Rule “when the natural consequence of one’s negligence is another’s involvement in a dispute with a third party,” which is also known as the “third-party tort rule.” South Sanpitch Co. v. Pack, 765 P.2d 1279, 1282-83 (Utah Ct.App.1988); see also Restatement (Second) of Torts § 914(2) (1979). The fees may be limited because an “allocation is made between recoverable fees incurred in litigation with third parties and non-recoverable fees incurred in pursuing the negligent defendant or expended on causes of action not proximately necessitated by that defendant’s negligence.” Id.
If your client gets sued because of the negligence or tort of another, even in breach of contract cases where the contract does not provide for attorney’s fees, remember to raise an affirmative claim against the other for attorney’s fees, costs, and other consequential damages if it is warranted. Also, this claim can be raised after the fact in a separate claim against the allegedly negligent third-party. Good luck.
