American rule

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In the field of law and economics, the American rule (capitalized as American Rule in some jurisdictions) is a rule controlling assessment of attorneys' fees arising out of litigation. The American rule provides that each party is responsible to pay its own attorney's fees unless specific authority granted by statute or contract allows the assessment of those fees against the other party. Under the American rule every party — even the party prevailing — must pay its own attorneys' fees. The American rule contrasts with the English rule, under which the losing party pays the prevailing party's attorneys' fees. The rationale for the American rule is that people should not be discouraged from seeking redress for perceived wrongs in court or from trying to extend coverage of the law. The rationale continues that society would suffer if a person was unwilling to pursue a meritorious claim merely because that person would have to pay the defendant's expenses if they lost.