prevailing party
Definition
The prevailing party is the side that wins a lawsuit or legal dispute. Courts often use this term because the winning side may be entitled to have the losing side pay their attorney's fees and legal costs, depending on the contract or law involved.
Example
If your contract says 'the prevailing party shall recover attorney's fees' and you sue a client for unpaid invoices and win, that client must pay your lawyer's bill on top of what they already owed you.
Watch Out
Always check your contracts for prevailing party language before signing, because it cuts both ways and you could end up paying the other side's legal fees if you lose.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.