Contract Glossary
Prevailing Party
Definition
The prevailing party is the side that wins — or substantially wins — a legal dispute. It matters because many contracts require the losing party to pay the winner's attorney's fees and costs.
In Practice
A landlord sues a tenant for $50,000 in damages. The tenant countersues for $20,000. The court awards the landlord $35,000 and the tenant $15,000. Who's the prevailing party? Courts in different states would handle this differently — some would award fees to the landlord, some would say there's no prevailing party.
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Frequently asked questions about prevailing party
Courts look at who achieved their main objectives. Some use a 'net judgment' test, others a 'catalyst theory.' When both sides partially win, courts have significant discretion.
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Create your contractThis content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.