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Hello Lucy, Thanks again for all your help I have one further

Hello Lucy, Thanks again for all...
Hello Lucy,

Thanks again for all your help I have one further question for you. Is it legal to put a clause in a NY business contract stating that

"In the event legal action is necessary to enforce the payment terms of this Agreement, the Company shall be entitled to collect from the Client any judgment or settlement sums due plus reasonable attorneys fees, court costs and other expenses incurred by the Company for such collection action"

Would putting this in the contract mean that we as the Company would be liable for Clients court and attorney costs if judgement was found in favor of Client?
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Answered in 19 minutes by:
10/7/2013
Lucy, Esq.
Lucy, Esq., Lawyer
Category: Employment Law
Satisfied Customers: 30,589
Experience: Former judicial law clerk, lawyer
Verified
Hi,

Yes, that clause is legal.

New York law only provides that a one-sided attorney's fees clause actually applies to both parties in the context of a mortgage or residential. Otherwise, it's not automatic. The idea is that the parties have the ability to negotiate so that either side could recover their fees from the others.

The other exception is if a judge believes that one party brought an action in bad faith.

If you have any questions or concerns about what I've written, please reply so that I may address them. It's important to me that you are 100% satisfied with the service I provide. Otherwise, please rate my service positively so that I get credit for answering your question. Thank you.
Lucy, Esq.
Lucy, Esq., Lawyer
Category: Employment Law
Satisfied Customers: 30,589
Experience: Former judicial law clerk, lawyer
Verified
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Lucy, Esq.
Lucy, Esq.
Lucy, Esq., Lawyer
Category: Employment Law
Satisfied Customers: 30,589
30,589 Satisfied Customers
Experience: Former judicial law clerk, lawyer

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