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More to Know About Attorney’s Fees for Bad Faith Filings and Actions

A trial court may only award attorney fees and costs directly related to the additional work caused by underlying bad faith conduct. The amount of the award of attorney’s fees must be directly related to the attorneys’ fees and costs that the opposing party has incurred as a result of the specified bad faith conduct. The trial court must look at the additional work that must be done and undertaken due to the bad faith actions. The court must not take into account work that would have been done irrespective of the bad faith actions. The court should only award bad faith fees for the additional work that was directly related to the bad faith conduct. That is what should be included in the sanctions award. 

A judge’s decision to impose sanctions for bad faith litigation conduct is reviewed under an abuse of discretion standard. The inequitable conduct doctrine permits the award of attorney’s fees where one party has exhibited egregious conduct or acted in bad faith. The doctrine is rarely applicable and is reversed for those extreme cases where a party acts in bad faith, vexatiously, wantonly, or for oppressive reasons. A finding of bad faith conduct must be predicated on a high degree of specificity in the factual findings, and the amount of the award of attorney’s fees must be directly related to attorney’s fees and costs that the opposing party has incurred as a result of the specified bad faith conduct. 

Whether claims are inextricably intertwined is not the pertinent query in bad faith sanction analysis. A trial court may examine whether claims are inextricably intertwined and thus provide a full fee award when the prevailing party is entitled to attorney’s fees and costs by either contract or statute for a particular claim but not others. 

If you have more questions regarding an attorney’s fees matter, you may call Ann Marie Giordano Gilden at Ann Marie Giordano Gilden, P.A. at 407-732-7620 and set an initial consultation. You may also visit my website at: https://www.annmariegildenlaw.com 

This article is for informational purposes only and does not form an attorney client privilege.