One-Way Attorney Fees
A one-way attorney fees clause, often headed legal costs or costs of enforcement, means you pay the brand's legal costs if the brand wins a dispute, while the brand pays nothing towards yours if you win. The imbalance is commonly negotiable: a reciprocal clause, or each side bearing its own costs.
What it means
This contract requires you to pay the brand's attorney fees and legal costs if the brand prevails in a dispute against you, but the brand has no matching obligation to pay your fees if you win. Fee asymmetry converts dispute cost into a deterrent against pursuing claims, even meritorious ones.
A one-way legal fees clause means only you could end up paying the other side's legal costs in a dispute. With one-way fee shifting, your downside risk is the claim amount plus the brand's legal costs; your upside is only the claim amount.
What to check before you sign
- ·Is the fee-shifting one-way or reciprocal?
- ·What triggers fee recovery, any breach or material breach?
- ·Are fees capped at a defined amount?
- ·Are filing fees, expert witness costs, and other expenses included?
- ·Is the clause tied to mandatory arbitration?
- ·Does prevailing-party language apply symmetrically?
How to fix it
Change one-way fee shifting to a reciprocal prevailing-party clause applying symmetrically to either party.
Replace fee shifting with each-party-bears-its-own fees, removing the asymmetric deterrent.
Cap fee recovery at a defined amount or at the underlying contract fee, bounding the creator's cost exposure.
Narrow the trigger from "any breach" to "material breach" or "bad-faith claims", limiting when fee shifting applies.
Negotiating it
"Could we make the legal fees clause a reciprocal prevailing-party clause that applies equally to both of us, or have each party bear its own legal fees? "
One-way attorney fees plus mandatory arbitration plus distant venue plus class-action waiver plus broad indemnity creates a dispute-resolution structure where the creator bears full procedural cost, substantive exposure, and the brand's legal costs on any contested dispute. Strong walk-away signal.
FAQs
- What is a one-way attorney fees clause?
- It is a clause saying the creator pays the brand's legal costs if the brand wins a dispute, with no matching obligation on the brand if the creator wins. The one-sided version is the pattern worth questioning; a mutual version applies the same rule to both parties.
- Is a one-way legal costs clause negotiable?
- Commonly, yes. The usual asks are a reciprocal prevailing-party clause that works both ways, each party bearing its own costs, or a cap on how much can be recovered.
- Why does a one-way legal costs clause matter for creators?
- Legal costs in a contested dispute can exceed the value of the claim itself, so a one-way clause makes pursuing even a legitimate complaint expensive to risk. That pressure is the clause's practical effect, and it is why the mutual version is the fairer standard.
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Educational guidance, not legal advice. For high-value or complex deals, get independent legal advice from a qualified professional.