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Will a State Agency Pay My Costs?
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Published: April 23, 2010
Authors:
Peter Conrad and
Charles (Buck) Sweeney
Wisconsin Statute § 814.245, Action by State Agencies, may provide clients with an interesting opportunity to receive attorney's fees from the state when a state agency brings an action that it cannot "substantially justify." This statute allows an individual, small non-profit organization, or small business that prevails in any action brought by a state agency or in any proceeding for judicial review under § 227.48 to potentially have the state cover attorney's fees. This statute provides that the Court "shall award costs to the prevailing party, unless the Court finds that the state agency was substantially justified in taking its position or that special circumstances exist that would make the award unjust."
While the American Rule traditionally allows for very limited recovery of any attorney's fees, this statute certainly may act as a deterrent to state agencies going after individuals, small non-profits, or small businesses unless there is a sound basis for doing so. With more and more unjust and unsubstantiated prosecution of small companies in these economic times, attorneys should be aware of raising the issue.
Charles V. (Buck) Sweeney and Peter J. Conrad are attorneys at Axley Brynelson, LLP. For more information on the Action by State Agencies statute, please contact Mr. Sweeney at 608.283.6743 or csweeney@axley.com, or Mr. Conrad at 608.260.2483 or pconrad@axley.com.
Axley Brynelson is pleased to provide articles, legal alerts, podcasts and videos for informational purposes, but we are not giving legal advice or creating an attorney/client relationship by providing this information. The law constantly changes, and our publications may not be currently updated. Before relying on any legal information of a general nature, please consult legal counsel as to your particular situation. While our attorneys welcome your comments and questions, keep in mind that any information you provide us, unless you are now a client, will not be confidential.
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