6+ Legal Definition of Prevailing Party Explained

definition of prevailing party

6+ Legal Definition of Prevailing Party Explained

The litigant who succeeds on a significant issue in a legal action, and achieves some of the benefit sought in initiating the suit, is often described with a specific legal term. This designation is pivotal because it frequently determines entitlement to recover costs and attorney’s fees from the opposing side. A typical scenario might involve a contract dispute where the claimant initially seeks \$100,000 but ultimately obtains a judgment for \$60,000. While not fully successful, the claimant is often considered the victor in the legal context.

This identification is critical in jurisdictions with statutes or contractual provisions that shift financial responsibility for litigation expenses to the losing side. It encourages the reasonable pursuit of valid claims and defenses, as parties are incentivized to avoid prolonged or frivolous litigation if they risk bearing not only their own costs, but also those of their adversary. Historically, the American Rule generally required each party to bear its own legal fees; however, exceptions established by statute or contract, often relying on this determination, have become increasingly common.

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