English rule

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In the field of law and economics, the English rule (capitalized as English Rule in some jurisdictions) is a rule controlling assessment of attorneys' fees arising out of litigation. The English rule provides that the party who loses in court pays the other party's attorney's fees. The English rule contrasts with the American rule, under which each party is generally responsible to pay its own attorneys' fees, unless a statute or contract provides for that assessment. The rationale for the English rule is that a litigant (whether bringing a claim or defending a claim) is entitled to legal representation and, if successful, should not be left out of pocket by reason of his own legal fees. It should be borne in mind that in virtually all English civil litigation damages are merely compensatory.