Grand Rapids Civil Attorney Fees and Costs Lawyer

Who pays the lawyers? In Michigan the answer is usually each side, unless a statute, a court rule or a contract says otherwise

I am Mitchell Bisson, a Grand Rapids civil litigation lawyer. I have litigated for over 15 years. This page explains how attorney fees and court costs work in Michigan civil cases: the general rule that each side pays its own lawyer, the statutes and court rules that move fees to the other side, how a contract fee clause is enforced and how a court decides what fee is reasonable. I represent people on either side of a civil case, and fee exposure matters to the party who may have to pay as much as to the party who hopes to recover. I do not promise outcomes.

The short answer. Michigan follows the American rule: attorney fees are not recoverable from the other side unless a statute or court rule authorizes them, and the statute on taxable costs says the same thing by listing attorney fees authorized by statute or court rule among the items that may be taxed. MCL 600.2405(6). The main exceptions are fee statutes for particular claims, awards for a frivolous action or defense, the offer of judgment rule and fee clauses in a contract. A prevailing party also recovers ordinary taxable costs unless the court directs otherwise. MCR 2.625(A)(1). Nothing here predicts how your case will end.

Fees often decide whether a case is worth bringing or worth defending. A claim can cost more to try than it is worth, and a client who understands where the fees land can make better choices about when to settle. I look at fees at the start of every civil case: who can be made to pay, under what rule, by when it has to be asked for and how a judge will measure it.

Costs and attorney fees are not the same thing

In Michigan, costs are the items the court rules and statutes allow to be taxed against the losing side, such as certain fees of officers and witnesses and the reasonable expense of a required bond. Attorney fees are separate, and they are taxable only when a statute or court rule authorizes them. MCL 600.2405. Costs are allowed to the prevailing party in an action unless prohibited by statute or by the court rules or unless the court directs otherwise for reasons stated in writing. MCR 2.625(A)(1). In an action with several counts or issues that state different causes of action or defenses, the party who prevails on each count may be allowed costs for it, and if a single cause of action is alleged the party who prevails on the entire record is the prevailing party. MCR 2.625(B)(2).

The procedure has a deadline that is easy to miss. When the clerk taxes costs, the party entitled to them must present a verified bill of costs within 28 days after the judgment is signed, or within 28 days after an order denying a timely postjudgment motion, and a failure to present it in time waives the right to costs. Another party then has 14 days after service to object. MCR 2.625(F)(2), (F)(3), (H). A settlement is deemed to include payment of any costs that might have been taxable unless the settlement says otherwise. MCR 2.625(I). I put the cost question into every settlement agreement so that it is addressed in writing.

The American rule and its exceptions

The Michigan Supreme Court has said that Michigan follows the American rule, under which attorney fees are not recoverable absent a statute or court rule that authorizes them, and it identified the taxable-costs statute as codifying that rule. Haliw v Sterling Heights, 471 Mich 700, 706-707 (2005). The Court of Appeals has repeated that the general rule is that attorney fees are not recoverable absent an express legal exception, and that exceptions are narrowly construed. Fleet Business Credit, LLC v Krapohl Ford Lincoln Mercury Co, 274 Mich App 584, 588-592 (2007). So a client who asks me whether the other side can be made to pay is really asking me to find the statute, the rule or the contract clause that fits.

Statutes that award attorney fees

Many Michigan statutes include a fee provision for a particular kind of claim. Whether the fee is mandatory or discretionary, and who can recover it, depends on the wording. The table lists the ones I check most often in civil cases.

Words such as “may” and “shall” matter. A statute that says the court shall award fees leaves less room than one that says the court may do so if it determines the award is appropriate. Some fee awards are tied to the consumer or the complainant alone, which means a defendant who wins does not get fees under that statute. I read the exact text of the fee clause before I advise anyone on whether a claim is worth bringing.

Frivolous claims and defenses

On a party’s motion, if the court finds that a civil action or a defense was frivolous, the court shall award the prevailing party the costs and fees incurred in connection with the civil action, assessed against the nonprevailing party and their attorney. MCL 600.2591(1). The statute defines frivolous as meeting at least one of three conditions: the party’s primary purpose was to harass, embarrass or injure the prevailing party; the party had no reasonable basis to believe the facts underlying the legal position were true; or the legal position was devoid of arguable legal merit. MCL 600.2591(3)(a). The statute defines the prevailing party as a party who wins on the entire record. MCL 600.2591(3)(b). The court rules provide that, in an action filed on or after October 1, 1986, if the court finds on a party’s motion that an action or defense was frivolous, costs are awarded as provided by that statute. MCR 2.625(A)(2).

Those standards are demanding, and a motion for sanctions can backfire if the position it attacks is arguable. I use the statute with care. When a client is accused of filing a frivolous claim, I review the factual basis and the legal authority before the answer is due, and when a client has been sued on a claim that has no basis, I document the defects in a way a judge can follow.

Offers of judgment

The offer of judgment rule is the main court rule that moves fees after a rejected offer. Until 28 days before trial, a party may serve a written offer to stipulate to the entry of a judgment for the whole or part of a claim, in a sum certain, including interest and costs then accrued. The other side has 21 days to accept, and an offer that is not accepted in that time is rejected. MCR 2.405(A)(1), (B), (C). If the adjusted verdict is more favorable to the offeror than the average offer, the offeree must pay the offeror’s actual costs. If it is more favorable to the offeree, the offeror pays the offeree’s actual costs, although an offeree who made no counteroffer cannot recover actual costs unless the offer was made less than 42 days before trial. MCR 2.405(D)(1), (D)(2). Actual costs are the costs and fees taxable in a civil action and a reasonable attorney fee, dating to the rejection of the prevailing party’s last offer or counteroffer, for services necessitated by the failure to stipulate to the entry of judgment. MCR 2.405(A)(6).

The rule has limits. The court may, in the interest of justice, refuse to award an attorney fee, and the rule gives token or de minimis offers and issues of first impression or public interest as examples. A request for costs must be filed and served within 28 days after entry of the judgment or an order denying a timely postjudgment motion. The rule does not apply to class actions under MCR 3.501. MCR 2.405(D)(3), (D)(6), (E). A well-timed, realistic offer can change how the other side values a case, and a rejected offer can become a fee claim. I raise offers with clients early and revisit them as the evidence develops.

Case evaluation is a separate process. Older decisions, including Haliw, discuss fee sanctions under an earlier version of the case evaluation rule. In the current text of the rule I read, a rejection of the panel’s evaluation means the action proceeds to trial in the normal fashion. MCR 2.403(N)(1). I check the current rule and any local order before I tell a client what a rejection will cost.

A new fee-shifting statute for speech cases

Michigan has a newer statute that can move fees in certain cases. The Uniform Public Expression Protection Act took effect on March 24, 2026. On a special motion under the act, the court shall award court costs, reasonable attorney fees and reasonable litigation expenses to the moving party if the moving party prevails, or to the responding party if the responding party prevails and the court finds the motion was frivolous or filed solely with intent to delay. MCL 691.1860. The act does not reach every claim. For example, a cause of action is not eligible if it is against a person primarily engaged in the business of selling or leasing goods or services and arises out of a communication related to that sale or lease, or if it arises from an individual’s claim under statutes the act lists, such as the Elliott-Larsen Civil Rights Act and the Whistleblowers’ Protection Act. MCL 691.1852(2). A special motion must be filed not later than 60 days after the moving party is served with the pleading, unless the court extends the time for good cause. MCR 2.114(B)(2). Because the statute is new, I treat the case law as still developing and I check for decisions that apply it before I advise on a motion.

Contract fee clauses

A contract can provide that the loser pays attorney fees. The Court of Appeals has held that contractual provisions for reasonable attorney fees are judicially enforceable, that the fees are damages and not costs, and that they are general damages that need not be pleaded as special damages. Fleet Business Credit, LLC v Krapohl Ford Lincoln Mercury Co, 274 Mich App 584, 588-592 (2007). The party seeking fees under the contract must bring the fee provision into the case as a claim. In Pransky v Falcon Group, Inc, 311 Mich App 164, 193-195 (2015), the Court of Appeals vacated a postjudgment fee order where the party had not sued to enforce the fee provision. The practical lesson is to plead the fee clause in the complaint or in a counterclaim, and to prove the fees as part of the case.

I read the fee clause for its scope. Some clauses cover only a suit to collect a debt, some cover any action arising from the agreement and some apply to one party only. Whether a clause covers a tort or a statutory claim, whether it covers the cost of an appeal and how the clause interacts with a statute on the same claim are questions I answer from the text.

How a court decides what fee is reasonable

A fee that is allowed is not the same as a fee that is awarded in the amount billed. In Smith v Khouri, 481 Mich 519, 530-532 (2008), the lead opinion explained that a court begins with the reasonable hourly rate customarily charged in the locality for similar legal services, established by reliable surveys or other credible evidence, and multiplies it by the reasonable number of hours expended. The court then considers whether other factors, including those in the Michigan Rules of Professional Conduct and the factors from earlier cases, justify an adjustment, and it should briefly indicate its view of each factor. The burden is on the party seeking the fee. The Court of Appeals applied the same framework to fee awards under the Michigan Consumer Protection Act and the Magnuson-Moss Warranty Act. Kennedy v Robert Lee Auto Sales, 313 Mich App 277, 300-302 (2015).

That is why records matter. A fee request is easier to defend when it comes with time entries kept as the work was done, a description of what each task accomplished and evidence of what lawyers in West Michigan charge for similar work. It is easier to attack when the entries are vague, duplicative or out of proportion to the issues. When I am the one opposing a fee request, I look for the same things.

Interest on a money judgment

For complaints filed on or after January 1, 1987, interest on a money judgment in a civil action is calculated at 6-month intervals from the date of filing the complaint, at a rate equal to 1% plus the average rate paid at auctions of 5-year United States treasury notes in the 6 months before each July 1 and January 1, compounded annually. It is calculated on the entire amount of the money judgment, including attorney fees and other costs. MCL 600.6013(8). A different rule applies to a judgment on a written instrument evidencing indebtedness with a specified rate, where the instrument’s rate can apply, up to 13%. MCL 600.6013(7). The statute has other provisions for particular actions, so I confirm the rate for the filing date before I quote a total.

How I handle a fee question

1. Find the basis. I look for the statute, court rule or contract clause that could move fees in either direction, and I read its exact words.
2. Plead it. If a fee clause or fee statute applies, I include the claim for fees in the complaint or counterclaim, and I raise the frivolous claim issue by motion when the facts support it.
3. Keep the records. I keep time entries as the work is done and I ask clients to keep their own records of costs and out-of-pocket expenses.
4. Weigh an offer of judgment. I decide with the client whether to serve an offer, when to serve it and what number is realistic, and I calendar the 28-day and 21-day periods in the rule.
5. Calendar the postjudgment deadlines. I calendar the 28-day deadline for a bill of costs and for a request for actual costs, and the 14-day period to object.
6. Prove the reasonable fee. I prepare the rate evidence and the hours in the form the court asks for, and I respond to the other side’s request line by line.
7. Address fees in any settlement. I state in writing who pays costs and fees, because a settlement is deemed to include taxable costs unless it says otherwise.

How fee disputes can end

A fee question can end in a ruling after a motion, in the amount fixed by the clerk on a bill of costs, in a negotiated number as part of a settlement, or in a hearing on what a reasonable fee is. Many disputes end when both sides understand the exposure. I tell you what I think the fee exposure is on your side and on the other side, and I do not promise a result.

What I need from you

Bring the contract with any fee clause, any statute or notice letter the claim depends on, and every demand letter, offer and response. Bring your fee agreement with any lawyer you have used, the invoices and a record of what you have paid. Write down every cost you have paid, such as filing fees, service fees, witness fees and deposition costs. If an offer of judgment, a case evaluation award or a sanctions request has been served, bring it with the date you received it, because the deadlines are short. Tell me what you want to achieve and what you can afford to spend, so that we can match the strategy to the budget.

Where your Kent County civil case will be heard

I represent clients in Grand Rapids, Kentwood, Grandville, Wyoming and across Kent County. Under MCL 600.8301(1), the district court has exclusive jurisdiction in civil actions when the amount in controversy does not exceed $25,000. Michigan law sets the Kent County district courts by municipality. The 61st District Court serves the city of Grand Rapids, the 59th serves the cities of Grandville and Walker, the 62A serves the city of Wyoming and the 62B serves the city of Kentwood. MCL 600.8128a; MCL 600.8130(1)-(3). The 63rd District Court serves the rest of Kent County, which includes the cities of Rockford, Lowell, Cedar Springs and East Grand Rapids and the surrounding townships. MCL 600.8130(4). Larger claims are filed in the Kent County Circuit Court, the 17th Judicial Circuit. MCL 600.518.

Why people hire me for a Michigan attorney fee matter

You work directly with me, the lawyer handling your case. I give you the strengths and weaknesses of the case straight, including what it could cost you and what it could recover. I build the case the facts support, and then we decide together how to proceed. On a fee question, that means I tell you what the fee rule is, whether it helps or hurts you and what the case could cost.

Fees depend on the type of case, its complexity and whether it is likely to go to trial. I explain my fee arrangement at the consultation, before you decide whether to hire me.

Related Michigan pages

• Grand Rapids civil litigation attorney
• Breach of contract
• Collecting a judgment
• Contract damages and remedies
• Injury settlements, fees and taxes

Reviewed by Mitchell S. Bisson, October 28, 2026.

I represent plaintiffs and defendants in civil cases in Kent County and West Michigan. Contact me 24/7 by phone or email. Your Rights, My Fight! Call for a free initial consultation.

Big-Firm Power. Street-Level Grit.

Law Offices of Mitchell S. Bisson, 2828 Kraft Ave SE, Suite 295, Grand Rapids, MI 49512, serving Kent County and West Michigan.

MBisson@BissonLegal.com

This page provides general information about Michigan law and is not legal advice. Reading it does not create an attorney-client relationship. Laws change and every case turns on its own facts. Consult a licensed attorney about your specific situation.