You Have a Prevailing Party Attorney’s Fees Clause. Now What?
Author: Lindsay A. Compton
Date: February 18, 2026
You have a prevailing party attorney’s fees clause in your contract that has been breached or a statute that allows for the recovery of attorney’s fees. What next? Many people assume that means if they “win,” the other side automatically has to pay their legal fees. Unfortunately, that is not always how it works — and misunderstanding this point can dramatically change the value and risk of a case.
The American Rule Still Applies, with Important Exceptions
Under the American Rule, each party is generally responsible for paying their own attorney’s fees, regardless of who wins. This is the default rule in most civil cases. This is discussed more thoroughly in a previous article you can read here: https://www.compton-law.com/blog/who-pays-attorneys-fees-in-florida-what-you-need-to-know-before-filing-a-lawsuit
However, there are exceptions. Attorney’s fees may be recoverable when:
1. A contract includes a prevailing party attorney’s fees provision; or
2. A statute specifically authorizes an award of attorney’s fees.
Common statutory examples in Florida include civil theft claims, consumer protection claims such as Florida Deceptive and Unfair Trade Practices Act and certain federal and state discrimination statutes.
Even when an exception applies, fees are not necessarily awarded to the plaintiff. They are awarded to the “prevailing party,” if there is one.
What Does “Prevailing Party” Actually Mean?
When awarding attorney’s fees, the “Prevailing party” does not simply mean you won something. Courts look at who achieved the primary relief sought in the case and who obtained the most meaningful success overall. A “Prevailing Party” is defined as the party who succeeds on the significant issues tried before the court and achieves the benefit sought in bringing the action. Moritz v. Hoyt Enters., Inc., 604 So. 2d 807, 810 (Fla. 1992); Trytek v. Gale Industries, Inc., 3 So. 3d 1194, 1200 (Fla. 2009). In certain statutory contexts, such as under Florida Statute Section 57.105(7), a prevailing party is defined more broadly as a party in whose favor a judgment is rendered, regardless of the amount of damages awarded. Deutsche Bank, National Trust Company as Trustee for Holders of the BCAP LLC Trust 2007-AA1 v. Quintela, 268 So.3d 156, 159 (Fla. 4th DCA 2019). The determination focuses on whether the party obtained meaningful relief or success on important aspects of their case, rather than requiring complete victory on all claims.
In most cases, prevailing party status is determined:
After a final judgment by a judge or jury, and
Based on the outcome of the case as a whole.
Importantly, prevailing party attorney’s fees generally do not apply to settlements unless the settlement agreement specifically addresses attorney’s fees or identifies a prevailing party. Without that language, each side often walks away paying their own fees.
Winning One Issue Is Not Enough
Winning on a single claim does not automatically make you the prevailing party for attorney’s fees. Courts look at who truly prevailed on the significant issues in the case.
In Skylink Jets, Inc. v. Klukan, the court held that the employer was not the prevailing party even though it won on one of five counts at trial. The court focused on the overall outcome, noting that the key liability issue was not seriously disputed and that the defendant largely prevailed on the damages issues that mattered most.
Similarly, in Schoenlank v. Schoenlank, the court denied attorney’s fees to both parties, finding that each side prevailed on some significant issues and lost on others. Because neither party achieved a clear overall victory, the result was effectively a tie—there was no prevailing party.
The takeaway is simple: courts do not count claims. They look at results. Partial or technical wins may not be enough to justify an award of attorney’s fees.
Why This Matters Before You Litigate or Settle
Attorney’s fees can quickly exceed the amount in dispute. Assuming fees are recoverable, without understanding how courts actually apply prevailing party rules, can lead to poor litigation decisions and missed opportunities during settlement negotiations.
Knowing when attorney’s fees apply, when they don’t, and how prevailing party status is determined should be part of any cost-benefit analysis before moving forward with a case.
Contact Compton Law, P.A.
If a contract the other party is breaching includes a prevailing party attorney’s fees clause or your claim arises under a statute that allows for attorney’s fees it is critical to understand how those fees actually work in practice. Contact Compton Law, P.A. at (239) 268-4114 or scheduled a consultation using the link below to evaluate your case, assess potential fee recovery, and develop a strategy that aligns with both your legal and financial goals.