Litigation Costs and Expenses Clause
(CO)

Summary

This litigation costs and expenses clause template may be used in a commercial agreement governed by Colorado law to apportion such costs and expenses in the event of a dispute between contracting parties. This template includes practical guidance and drafting notes. This clause provides that the prevailing party in any dispute arising out of an agreement may recover its reasonable attorney’s fees and related costs from the non-prevailing party. Such a clause protects against frivolous lawsuits, as it is far less likely that a party will sue the other party unless it reasonably believes that it will prevail under the circumstances. For additional guidance, see Contract Clause Review (Litigator's Perspective), Commercial Contract Drafting and Review, Commercial Contract Drafting and Review Checklist, and Avoiding Key Risk Allocation Pitfalls When Drafting Commercial Contracts (CO).