[Direct answer]In the Beijing area, whether the attorney's fees can be claimed as part of the breach of contract damages depends on whether there is a clear agreement in the contract or whether there are special provisions in the law. In China, the attorney's fees are generally borne by the hiring party, but if the contract stipulates in advance that the breaching party shall bear the reasonable attorney's fees incurred by the complying party to enforce the creditor's rights and does not violate mandatory provisions, the court will usually support the claim according to the agreement; some judicial interpretations and arbitration rules also allow the successful party to claim the attorney's fees. When making the claim, it is necessary to prove that the attorney's fees have actually been incurred, the charging is reasonable, and it is directly related to the protection of rights. Avoid claiming fees that are obviously too high. It is recommended to pre-agree on the attorney's fee-bearing clause when signing the contract, and to keep the entrustment contract and invoices after a dispute arises. For more details, please refer to the following link:Business and contract dispute services for enterprises.

1. Problem background and typical scenarios

Can attorneys' fees be claimed together with breach of contract damages? This is a frequently asked question in contract disputes. Typical scenarios include: the breaching party sues the non-breaching party after a breach of contract and hopes to include the attorneys' fees borne by the other party in the claim; the borrowing or service contract stipulates in advance that "the breaching party shall bear the costs of defending rights"; the losing party is required to compensate for attorneys' fees in arbitration cases according to the arbitration rules; and whether attorneys' fees can be claimed separately if the contract only stipulates a breach of contract penalty but does not mention attorneys' fees. Many parties mistakenly believe that attorneys' fees must be paid out of their own pockets, or conversely, that they can pass on all the costs to the losing party as long as they win the case. The key depends on the contractual provisions and rules, rather than the outcome of the case itself. Related debt collection can be combined withCreditor-debtor relations and enforcement case servicesAdvance.

II. Key points of dispute

There are three main points of contention. Firstly, the validity of the agreement: whether the clause stipulating that the attorney's fees shall be borne by the client is a valid provision and whether it is manifestly unfair, which is the prerequisite for supporting or opposing it. Secondly, the reasonableness and relevance: whether the amount of the attorney's fees is commensurate with the actual workload and the amount of the subject matter, and whether it is truly a necessary expense for protecting rights. The court often conducts a review of its reasonableness. Thirdly, the basis of the rules: in the absence of an agreement, whether it is possible to invoke judicial interpretations or arbitration rules to make a claim depends on the type of dispute and the litigation process. For cross-border disputes, it can be connected to relevant procedures.Financial capital and cross-border legal services involving foreign affairsAnalyze and judge the applicable rules.

III. Professional analysis by Hengluo Lawyers

The arbitration case of a commissioned creation contract dispute handled by Attorney Xiong Binrong of our firm is of great reference value in terms of whether "attorney fees can be claimed together with losses". In May 2022, Shanghai A Technology Company and Shenzhen B Network Company signed a "Project Outsourcing Agreement", which stipulated that the production cost would be 583,000 yuan. After the respondent paid an advance of 291,500 yuan, the applicant completed the final version and passed the acceptance in July 2022, but the respondent delayed the payment of the remaining amount. The applicant entrusted Attorney Xiong Binrong of Beijing Henglu Law Firm to apply for arbitration, requesting the payment of the contract amount of 583,000 yuan, the breach of contract penalty of 116,600 yuan, and the attorney fees and arbitration fees. The respondent argued that the applicant's delay in delivery and failure to meet quality standards constituted a fundamental breach of contract, and refused to pay all fees. After the arbitration tribunal heard the case, it adopted the attorney's main opinion, holding that the work had passed the acceptance and the delay was caused by the respondent. In the end, the arbitration tribunal ruled that the respondent should pay the contract amount of 583,000 yuan and compensate the applicant for all attorney fees; the arbitration fees of 30,366 yuan would be shared by both parties in proportion. This case shows that when the contract clearly stipulates or the arbitration rules support it, attorney fees can be claimed as reasonable expenses for protecting rights by the breaching party. This case was handled by Beijing Henglu Law Firm.Xiong BinrongThe lawyer (practice license number: 11101202211410897, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

The core basis is Article 509 (Principle of Full Performance), Article 577 (Liability for Breach of Contract), and Article 584 (Scope of Damages) of the Civil Code of the People's Republic of China (effective January 1, 2021), as well as the provisions on litigation cost burden in the "Measures for the Payment of Litigation Costs" (effective April 1, 2007); some judicial interpretations and arbitration rules also stipulate the assumption of reasonable legal defense costs. Practical suggestions: When signing a contract, clearly stipulate that the legal defense costs such as attorney fees, arbitration fees, and preservation fees shall be borne by the breaching party; promptly sign a power of attorney contract, obtain invoices, and retain payment receipts after a dispute arises; the amount claimed should be commensurate with the subject matter and the workload to avoid being obviously excessive; in arbitration cases, the provisions on cost burden in the arbitration rules can also be invoked to increase the likelihood of obtaining support. For enterprise contract templates, relevant provisions can be incorporated accordingly.Intellectual property protection and corporate legal servicesImprove the terms and conditions.

5. Hengluo Law Firm's Reminder

The claim for attorney's fees is not a "win-all" situation. The key lies in the agreement and its reasonableness. Enterprises should set out provisions on the burden of litigation costs in their contracts, specifying attorney's fees, arbitration fees, and preservation fees to reduce the difficulty of providing evidence afterwards. After a dispute arises, they should promptly entrust a lawyer and retain the entrustment contract, invoices, and payment records to ensure that the fees were genuinely incurred. When making a claim, the amount should be reasonable to avoid being adjusted due to unrealistic demands. Even if there is no contractual provision, they should verify whether the type of dispute involved or the arbitration rules allow it, and not give up on it just because they assume it won't work. If necessary, they can seek professional evaluation to assist them in making a more informed decision.Special services and other case servicesDevelop a plan.

VI. Frequently Asked Questions

Q1: The contract doesn't mention attorney's fees. Can I still make the other party bear the costs after a breach of contract?

In principle, attorneys' fees are borne by the party who hires the lawyer. If no such provision is included in the contract, the court generally does not directly order the other party to bear the fees. However, there are two exceptions: First, laws and judicial interpretations explicitly stipulate that in certain types of disputes, the reasonable legal defense costs shall be borne by the breaching party; Second, in arbitration cases, if the arbitration rules permit, the winning party may claim that the losing party compensate for the attorneys' fees. Therefore, the absence of a contractual provision does not absolutely preclude the recovery of attorneys' fees, but the burden of proof and application standards are higher. The most reliable approach is to explicitly include attorneys' fees and other legal defense costs in the breach-of-contract clauses when signing the contract, and to claim them in accordance with the contract after a dispute arises. The success rate is much higher than that of retroactively adding supporting arguments after the fact.

Q2: To claim attorney's fees, what evidence do I need to prepare?

The core evidence includes: the power of attorney contract (to prove the principal-agent relationship and the basis for charging fees), attorney's fee invoices and payment vouchers (to prove that the fees have actually been incurred), fee standards or billing instructions (to prove that the amount is reasonable), and the attorney's fee assumption clauses in the main contract or the basis for arbitration rules. The goal of organizing the evidence is to form a closed loop of "agreement or rule basis - actual payment - reasonable amount - related to protecting rights". It's difficult to gain support if there's only an oral agreement or no invoices. It's recommended to keep records throughout the process and specify the specific amount and calculation method in the claim to avoid having the general claim reduced.

Q3: How much will the attorney's fees be, and can the other party pay for them entirely?

The attorney's fees are related to the complexity of the case, the amount of the claim, and the attorney's qualifications. They are usually charged on a per-case, hourly, or percentage-of-the claim basis, with the specific terms subject to the retainer contract. There is no unified government pricing for legal services, and contingency fees are subject to a percentage cap in civil and commercial cases involving property relations. Whether the other party can bear the full fees depends on whether the contract or rules support it and the court's determination of reasonableness: if the agreement is clear and the amount is reasonable, the full amount can be supported as agreed; if the amount is obviously too high or lacks basis, the court may adjust it as appropriate. It is recommended to clarify the fee charging method and cap with the law firm before entrusting them and to keep the relevant documents for future claims.

Q4: Will the attorney's fees be handled together with the main case? How long do I have to wait for that?

The claim for attorney's fees is usually part of the main lawsuit or arbitration request and is adjudicated together with the main proceedings, without being calculated separately. The first-instance ordinary procedure generally lasts six months, and the summary procedure lasts three months; arbitration typically takes several months depending on the rules and complexity. If the main case is appealed, the claim for attorney's fees will be reviewed together with the second-instance proceedings, which generally last three months. After the judgment or award becomes effective, if the other party refuses to perform, it is necessary to apply for compulsory enforcement. Overall, from the filing of the case to the actual collection of attorney's fees, simple cases may take several months, and complex cases may take more than a year. It is recommended to apply for property preservation simultaneously.

Q5: I want the other party to bear the attorney's fees. How should I proceed specifically?

It is recommended to proceed in four steps: First, at the contract signing stage, include a clause in the contract stipulating that the breaching party shall bear the cost of protecting rights (including attorney fees, arbitration fees, and preservation fees); Second, after a dispute arises, promptly hire a lawyer, sign a written power of attorney contract, and obtain invoices and retain payment receipts; Third, when suing or arbitrating, list the attorney fees as a clear claim or request, and attach the contract basis, invoices, and a justification of reasonableness; Fourth, during the trial, provide evidence regarding the validity of the agreement and the reasonableness of the fees, and prepare in advance to refute the defendant's argument that the fees are "excessively high". Throughout the process, retain all relevant materials and, if necessary, hire a lawyer to assess whether the applicable rules can be invoked to support the claim.

The above answer is based on the judicial practice in the Beijing area. The judicial interpretations in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situations.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, so as to avoid missing the statutory time limit.Business and commercial legal services·Attorney Xiong Binrong·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.