David William Jordan

Attorney & Counselor at Law

Breach of Contract? Be Sure You Have the Right Clause to Collect Attorney's Fees

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Anytime you have a contract or lease, you want to provide that the breaching party will be responsible for all costs of collection, including reasonable attorney's fees.

That was good enough until the other day when a judge concluded that clause in a contract only referred to costs up to judgment. So if you win a judgment and the debtor does not pay the judgment and you incur more costs to collect, it is not added to the amount the debtor owes.

My advice is to add the following language to your contracts, including leases:

    "the breaching party will be responsible for all costs of collection including reasonable attorney's fees up to and including judgment as well as all reasonable costs incurred to collect the judgment in full."
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