Loser pays legal fees in partnership agreement

[Filer5]

Hi All:
Is it legal to include in a partnership agreement in NY that if the partners have a dispute, the "loser" basically pays all legal fees involved in the dispute, for both sides?

I understand the actual clause would probably have to be more technical and precise but I am asking about the concept generally, is that legal to do?

[adjusterjack]

Re: Loser pays legal fees in partnership agreement

Hi All:
Is it legal to include in a partnership agreement in NY that if the partners have a dispute, the "loser" basically pays all legal fees involved in the dispute, for both sides?

I understand the actual clause would probably have to be more technical and precise but I am asking about the concept generally, is that legal to do?

It's legal to have that in a contract. And it actually is that simple to say "loser pays winner's legal fees" though it's usually not written that way.

In the American legal system the parties to a lawsuit are required to pay their own attorney fees UNLESS there is an attorney fee provision in the contract (or there is a statutory requirement).

It certainly seems that your partnership agreement has a thoroughly enforceable bilateral attorney fee provision.

If you are getting into a partnership with a person smarter than you, maybe you had better reconsider the idea.