The equitable-fund doctrine, also known as the common-fund doctrine, allows individuals who contribute to the creation, discovery, or preservation of money that others are entitled to, to request reimbursement for their legal fees and expenses from that money.
The common-fund doctrine, also known as the equitable-fund doctrine, is a legal principle that allows a litigant to recover litigation costs and attorney’s fees from a fund that they helped create, discover, increase, or preserve, to which others also have a claim. For example, if a group of investors sues a company for fraud and the company agrees to pay a $10 million settlement, the investor who hired an attorney and incurred legal fees of $100,000 to bring the lawsuit could recover a portion of their legal fees from the settlement fund. Similarly, in a class-action lawsuit, the lead plaintiff who initiated the lawsuit may be entitled to recover their legal fees from the settlement fund under the common-fund doctrine. This legal principle ensures that those who contribute to the creation or preservation of a fund that benefits others are fairly compensated for their legal expenses.
The Common-Fund Doctrine is a legal principle that allows a party who recovers a monetary award or settlement in a lawsuit to be reimbursed for the attorney fees and costs incurred in obtaining that recovery from a common fund.
The Common-Fund Doctrine applies when a party’s legal action results in the creation or preservation of a fund that benefits others, such as a class action lawsuit or a personal injury case where multiple individuals are affected.
The Common-Fund Doctrine ensures that plaintiffs who initiate legal actions to recover a fund or settlement are not solely responsible for the attorney fees and costs incurred in the process. Instead, these expenses are shared by all beneficiaries of the fund.
In some cases, the Common-Fund Doctrine can be waived if the parties involved agree to do so through a contractual agreement or other legally binding arrangement. However, such waivers are not always enforceable, and courts may still apply the doctrine if it is deemed necessary to prevent unjust enrichment.
The Common-Fund Doctrine typically applies only to cases where the recovery is in the form of a monetary award or settlement. It may not apply to cases seeking injunctive relief or non-monetary remedies.
Attorney fees under the Common-Fund Doctrine are usually calculated as a percentage of the total recovery obtained from the common fund. The specific percentage may vary depending on the jurisdiction and the circumstances of the case.
The attorney fees under the Common-Fund Doctrine are typically paid out of the common fund itself. This means that the fees are deducted from the total recovery before it is distributed to the beneficiaries.
Yes, in some cases, attorney fees can be awarded separately from the Common-Fund Doctrine. This may occur when the court determines that the party seeking attorney fees has provided a substantial benefit to a specific group or class of individuals, even if a common fund was not created.
While the Common-Fund Doctrine is primarily associated with litigation, some jurisdictions have extended its application to non-litigation contexts, such as when a party recovers funds through negotiation or settlement outside of court.
If you believe that the Common-Fund Doctrine may apply to your case, it is advisable to consult with an experienced attorney who can assess the specific circumstances and provide guidance on how to proceed. They can help you understand your rights and obligations under the doctrine and assist in pursuing a fair distribution of the common fund.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 16th April 2024.
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