Who Pays Legal Fees for Eviction in a Commercial Lease?
Eviction in a commercial lease context is often more complex and expensive than residential evictions. Commercial leases involve businesses, higher rental amounts, and legally binding obligations that are strictly enforced. One key aspect that often becomes a point of contention in a commercial eviction is who pays legal fees for eviction—especially when the dispute escalates to court.
Understanding how legal fees are handled in commercial lease evictions is crucial for both landlords and tenants. The answer is primarily found in the lease agreement itself, although local laws and court discretion can also play a role.
Legal Fees in Commercial Evictions: An Overview
Legal fees in a commercial eviction can include attorney charges, court filing fees, service of process costs, and enforcement expenses like hiring a sheriff to execute a writ of possession. Since these proceedings often involve higher financial stakes and legal complexities, legal fees can add up quickly.
Unlike residential leases, where courts may be more lenient, commercial leases are often enforced strictly as written. This means the language in the lease regarding legal costs plays a central role in determining who pays them.
Lease Agreements Typically Control
Most commercial leases include a clause that addresses the responsibility for legal fees in the event of a dispute. This is commonly referred to as an “attorney’s fees clause” or “prevailing party clause.” These clauses are standard in commercial contracts and generally state that the party who loses a legal dispute must pay the attorney fees and court costs of the winning party.
For example, if a tenant fails to pay rent or violates a lease term and is evicted, the lease may specify that the tenant must pay the landlord’s legal fees. Conversely, if the landlord wrongfully tries to evict the tenant and the tenant wins the case, the landlord may be liable for the tenant’s legal costs—provided the clause is written in a way that applies to both parties.
State Laws and Court Discretion
Although lease language carries significant weight, local laws and court practices still matter. Some states enforce attorney’s fees clauses only if they apply equally to both parties. Others allow legal fees to be awarded regardless of what the lease says, especially if one party is found to have acted in bad faith.
That said, in commercial cases, courts are generally less inclined to protect tenants compared to residential eviction cases. Judges often assume that both parties had legal counsel when negotiating the lease and understood the risks and obligations.
When Legal Fees Cannot Be Recovered
In some cases, legal fees may not be recoverable at all. This can happen if:
- The lease is silent on legal fees
- The court determines the attorney’s fees clause is too one-sided
- The court dismisses the case without ruling on the merits
In these situations, each party may have to bear their own legal expenses, regardless of the outcome.
Final Thoughts
In commercial lease evictions, the party responsible for legal fees is usually determined by the lease agreement. Landlords and tenants should read these clauses carefully before signing and understand what’s at stake. Legal fees can be significant, especially if the case goes to trial, and the losing party may be required to pay not only their own expenses but also those of the other party. Seeking legal advice early on can help both sides navigate disputes and avoid unexpected financial liability.
