Fee-shifting statute

The default rule in American courts is that each side pays its own lawyers, no matter who wins. Fee-shifting statutes are exceptions, written by legislatures to encourage people to bring or defend particular kinds of cases. Civil rights laws, consumer protection laws, and environmental statutes often include fee shifting. Some statutes shift fees only to plaintiffs, some shift them in either direction, and some have special rules for frivolous cases. These laws can dramatically change the economics of a lawsuit and the leverage of settlement talks.