In a ruling that could cause litigants to think twice before rejecting an offer to liquidate damages in breach of contract cases, the Appellate Division, First Department, has held that plaintiffs who receive a less favorable judgment at trial are liable for the other side’s costs and attorney fees.
The March 27 decision in Elissa Abreu v. Barkin and Associates Realty, 603992/2006, clarifies an ambiguous provision of the New York Civil Practice Law & Rules and marks a significant shift away from the American system where each side pays its own legal fees.
