Monday Morning Memo: Why You Do Not Want The Phrase Prevailing Party In Your Agreements From A Collection Standpoint

Why You Do Not Want The Phrase Prevailing Party In Your Agreements From A Collection Standpoint

Wilson Cole, President of Adams, Evens, & Ross (AER) and Samantha Cole, in-house counsel for AER, give advice on some things they’ve found in client contracts that can be “ticking time bombs” which prevent successful collection down the road. The specific example that Wilson and Samantha are eager to warn clients to keep out of their contracts because they saw it in a contract recently and it made them scratch their heads is something similar to “the prevailing party will have their court costs paid by the other party.” Wilson likens this language to an open invitation for the debtor to sue you if the court does not side in your favor.