Virginia House Bill HB182

Virginia 2024 Regular Session

• Introduced: 1/3/24
• Refer: 1/3/24

Caption

Breach of a contract; award of attorney fees, factors.

Impact

The introduction of HB182 signifies a shift towards granting courts more discretion in determining the reasonable amount of attorney fees in contract cases. With provisions specifying that attorney fees awarded should reflect various factors—such as the complexity of the case, the attorney's skill, and customary fees in the locality—the bill seeks to ensure that both plaintiffs and defendants are treated fairly when requesting fee awards. This could lead to greater clarity and predictability in contractual agreements moving forward.

Summary

House Bill 182 aims to amend the Code of Virginia by establishing a new section related to breaches of contract. The bill allows courts to award reasonable attorney fees to a prevailing party in any contract dispute, provided the contract includes a clause that permits such awards. This legislative change is intended to clarify the conditions under which attorney fees may be claimed in civil litigation, enhancing the enforceability of contractual provisions concerning legal costs in disputes.

Contention

While the bill has garnered support for its intention to standardize attorney fee awards in contract disputes, it also raises potential contention regarding the subjective nature of 'reasonable' attorney fees. Critics may argue that the factors outlined for determining these fees could lead to inconsistent rulings by different courts, thereby affecting the reliability of contract execution and enforcement. Additionally, concerns about the burden on litigants who may feel pressured to incur legal fees could be a point of discussion during legislative sessions.