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Loser-Pays System States

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States Having Loser Pays System

The following are examples of states that have a loser-pays clause or an “offer of settlement” system in its state laws. These systems can either be one-way or two-way systems:

  • Alaska – has a loser-pays system. It requires, in almost all every category of civil cases, the loser of the lawsuit to pay a portion of the winner’s attorney’s fees. Alaska is the only state with a generally applicable two-way loser-pays system.
  • Oregon and Oklahoma – have enacted statutes that apply loser-pays principles to many areas of litigation. In Oklahoma a defendant can choose an “offer-of judgment “provision. Oregon has converted a lot of one-way loser-pays statutes into two-way loser-pays statutes.
  • Texas – has an offer of settlement system. The defendant must state that the case is subject to this system. If an offer is objected and the ultimate judgment is significantly less favorable the offering party can recover certain costs since the offer. In certain situations such provisions are not allowed. This is for example the case in class action lawsuits, worker’s compensation cases and Family Law cases.
  • New York – has a loser-pays system when suing for unfair and deceptive business practice. It also has an offer-settlement system if the final outcome is worse than a settlement offer.  
  • California – has a loser-pays system when suing for unfair and deceptive business practice. It also has an offer-settlement system if the final outcome is worse than a settlement offer. 
  • Illinois – has a loser-pays system when suing for unfair and deceptive business practice.
  • Florida – has an offer-settlement system if the final outcome is worse than a settlement offer.
Photo of page author Ken LaMance

, LegalMatch Law Library Managing Editor and Attorney at Law

Last Modified: 01-14-2014 03:48 PM PST

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