Attorney Fee Shifting – Consumer Contract Cases in Connecticut

Connecticut General Statutes Section 42-150bb provides

Whenever any contract or lease entered into on or after October 1, 1979, to which a consumer is a party, provides for the attorney’s fee of the commercial party to be paid by the consumer, an attorney’s fee shall be awarded as a matter of law to the consumer who successfully prosecutes or defends an action or a counterclaim based upon the contract or lease. Except as hereinafter provided, the size of the attorney’s fee awarded to the consumer shall be based as far as practicable upon the terms governing the size of the fee for the commercial party. No attorney’s fee shall be awarded to a commercial party who is represented by its salaried employee. In any action in which the consumer is entitled to an attorney’s fee under this section and in which the commercial party is represented by its salaried employee, the attorney’s fee awarded to the consumer shall be in a reasonable amount regardless of the size of the fee provided in the contract or lease for either party. For the purposes of this section, “commercial party” means the seller, creditor, lessor or assignee of any of them, and “consumer” means the buyer, debtor, lessee or personal representative of any of them. The provisions of this section shall apply only to contracts or leases in which the money, property or service which is the subject of the transaction is primarily for personal, family or household purposes.

The contract must have a provision for attorney’s fees to be awarded to a commercial party. As defined by statute, a commercial party is a “seller, creditor, lessor or assignee of any of them.”

A consumer party is a “buyer, debtor, lessee or personal representative of any of them.”

Furthermore, the statute only applies to contracts or leases in which “the money, property or service which is the subject of the transaction which is primarily for personal, family or household purposes.” There can be situations in which a transaction is for most personal and business purposes, so the issue then becomes when the transaction is primarily for personal purposes.

Common situations in which these occur are debt collection, and household leases.

The provision applies to a situation in which a contract ” provides for the attorney’s fee of the commercial party to be paid by the consumer.” It makes no difference if the commercial party is actually seeking the attorney’s fees.

For an award of attorney’s fees, the consumer must “successfully prosecute(s) or defend(s) an action or a counterclaim based upon the contract or lease.” A withdrawal may be treated like a successful defense, but not in all cases. See Connecticut Housing Finance Authority v. Asdrubal Alfaro 163 Conn. App. 587 (2016). In situations in which a plaintiff files a withdrawal of action , a consumer/defendant should immediately move for attorney’s fees, and claim that a withdrawal should be treated as a successful defense, warranting attorney’s fees.

If you have any questions, concerning a claim for attorney’s fees, in a consumer contract, please feel free to contact

Attorney Robert M. Singer

2572 Whitney Avenue

Hamden, CT 06518

203-248-8278

rsingerct@yahoo.com

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