Legal Definitions - American rule

Definition: American rule is a policy that requires all parties involved in a legal dispute to pay their own attorney's fees, even if they win the case. However, there are exceptions to this rule, such as cases involving bad faith or certain contractual agreements.

Example: If a person sues their neighbor for property damage and wins the case, they will still have to pay their own attorney's fees under the American rule. This means that even though they were successful in their lawsuit, they will still have to cover the cost of their legal representation.

Explanation: The American rule is designed to discourage frivolous lawsuits and to ensure that each party is responsible for their own legal expenses. In the example given, the person who sued their neighbor would have to pay their own attorney's fees, regardless of the outcome of the case. This helps to prevent people from filing lawsuits simply to harass or intimidate others, as they would have to bear the financial burden of their legal actions.