Attorneys’ Fees for Damages $10,000 or Less

By Cotney Construction Law, LLP. 

Have you ever thought about filing a lawsuit but were deterred due to the price of hiring an attorney?

Lawsuits are expensive and the cost of litigation is going to get more and more expensive every year. However, Oregon and Washington have statutes that have reduced the burden on prevailing parties in arbitration or trial by awarding them their attorneys’ fees in certain situations. The two statutes, ORS 20.080 and RCW 4.84.250, provide that a litigant who makes a claim for damages of $10,000 or less will be awarded attorney fees if they are the prevailing party at arbitration or trial. These statutes require specific procedures that need to be followed before any attorneys’ fees can be awarded by the court.

In Oregon, the statute limits the recovery of attorneys’ fees to disputes where the amount in controversy is $10,000 or less. ORS 20.080(1). In order to recover the attorneys’ fees, the other side must be given notice, some supporting documentation, and a demand to resolve the claim. The other side can escape being held liable for attorneys’ fees if they respond to the written demand with a settlement offer before litigation begins. If the other side makes an offer to settle that is more than the damages ultimately awarded to the prevailing party in litigation, then the prevailing party will not recover attorneys’ fees.

Likewise, in the state of Washington, in any action for damages where the damages are $10,000 or less, one can successfully acquire attorneys’ fees pursuant to RCW 4.84.250. However, the Washington statute does not set forth any specific requirements for making a written demand for payment before filing a lawsuit, nor is there a requirement to provide any supporting documentation. The litigant is deemed the prevailing party when the recovery amount is as much as or more than the amount demanded. RCW 4.84.260. There are timing requirements that apply once litigation has commenced.

In both Oregon and Washington, if your dispute is under $10,000, you should consult an attorney to discuss the merits of pursuing a recovery. Additionally, if you are served with a demand where the amount in controversy is under $10,000, you should immediately consult an attorney to evaluate your response, and make sure to respond in a timely manner.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation. Regulations and laws may vary depending on your location. Consult with a licensed attorney in your area if you wish to obtain legal advice and/or counsel for a particular legal issue.

Contact Cotney Construction Law for additional information.

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