reclaiming legal fees

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reclaiming legal fees

I had a verbal agreement to purchase a business from someone. They requested I
pick from a list of law firms to due my due diligence on the business and draw up
the PSA. Once the PSA was drawn up and terms were negotiated they backed out. Can
recoup the fees the law firm has charged me upfront from the business seller?

Asked on August 1, 2018 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

No, you cannot recover your legal fees. You had no obligation to do this--you choose to make the offer on the business, and you chose to hire a lawyer to do due diligence (while hiring an attorney is a good idea, it is not a legal requirement). You cannot recover from another person fees to voluntarily incurred.


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