Can we recover our attorney fees from the other side if we win?
Minnesota follows the American rule. The Supreme Court described it as 'a fundamental principle of law deeply ingrained in our common law jurisprudence' that each party bears his own attorney fees in the absence of a statutory or contractual exception (Ly v. Nystrom). Where a statute does create a fee remedy, Minnesota presumes statutes are consistent with the common law: Ly held that the private attorney general statute, Minn. Stat. § 8.31, subd. 3a, which lets any person injured by a violation of the laws the attorney general enforces recover damages together with costs and disbursements, including costs of investigation and reasonable attorney's fees, applies only to claimants who demonstrate that their cause of action benefits the public.
The trap
The trap is assuming a statutory fee-shifting hook survives contact with the public-benefit limit. In Ly the plaintiff's one-on-one purchase of a business fell within the practices the consumer-fraud act prohibits and he still lost his fee claim, because he 'was defrauded in a single one-on-one transaction' and enforcement had no public benefit. Note also what this rule does not cover: it states the default rule and one statutory exception, not the construction of any particular prevailing-party clause. One Minnesota statute reviewed here does award fees by its own words: Minn. Stat. § 181.988, subds. 2(d) and 3(c) say a court 'may award' an employee enforcing rights under that section reasonable attorney fees, which is permissive, not automatic.
8 authorities
The words that state the rule
because to do so would substantially alter a fundamental principle of law deeply ingrained in our common law jurisprudence-that each party bears his own attorney fees in the absence of a statutory or contractual exception. See Church of Nativity, 491 N.W.2d at 10 (Simonett, J., concurring in part and dissenting in part); see also Barr/Nelson, Inc. v. Tonto's, Inc., 336 N.W.2d 46, 53 (Minn. 1983) ("We have long held that attorney fees are not recoverable in litigation unless there is a specific contract permitting or a statute authorizing such recovery.").
The words that state the rule
Based on these considerations we hold that the Private AG Statute applies only to those claimants who demonstrate that their cause of action benefits the public.
The words that state the rule
Appellant was defrauded in a single one-on-one transaction in which the fraudulent misrepresentation, while evincing reprehensible conduct, was made only to appellant. A successful prosecution of his fraud claim does not advance state interests and enforcement has no public benefit, and is not a claim that could be considered to be within the duties and responsibilities of the attorney general to investigate and enjoin.
- statuteMinn. Stat. § 8.31enactment date not established
The words that state the rule
In addition to the remedies otherwise provided by law, any person injured by a violation of any of the laws referred to in subdivision 1 may bring a civil action and recover damages, together with costs and disbursements, including costs of investigation and reasonable attorney's fees, and receive other equitable relief as determined by the court.
- statuteMinn. Stat. § 181.988enactment date not established
The words that state the rule
In addition to injunctive relief and any other remedies available, a court may award an employee who is enforcing rights under this section reasonable attorney fees.
The words that state the rule
We have for as long presumed that statutes are consistent with the common law, and if a statute abrogates the common law, the abrogation must be by express wording or necessary implication. See In re Shetsky, 239 Minn. 463, 469 , 60 N.W.2d 40, 45 (1953). We decline to construe legislative intent to abrogate the common law with regard to the attorney fees provision in the absence of a clear purpose to do so.
The words that state the rule
We conclude that the unlawful practices here, occurring while engaging in a one-on-one transaction for the purchase of a business for operation and not resale, fall within the trade practices prohibited by section 325F.69, subdivision 1.
- statuteMinn. Stat. § 8.31enactment date not established
The words that state the rule
The attorney general shall investigate violations of the law of this state respecting unfair, discriminatory, and other unlawful practices in business, commerce, or trade, and specifically, but not exclusively, the Nonprofit Corporation Act (sections 317A.001 to 317A.909), the Act Against Unfair Discrimination and Competition (sections 325D.01 to 325D.07), the Unlawful Trade Practices Act (sections 325D.09 to 325D.16), the Antitrust Act (sections 325D.49 to 325D.66), section 325F.67 and other laws against false or fraudulent advertising, the antidiscrimination acts contained in section 325D.67 , the act against monopolization of food products (section 325D.68), the act regulating telephone advertising services (section 325E.39), the Prevention of Consumer Fraud Act (sections 325F.68 to 325F.70), and chapter 53A regulating currency exchanges and assist in the enforcement of those laws as in this section provided.
“Defective” means that reading found something to correct. What you are reading is the rule as it stands after that reading.