The Fourth Circuit has made a pivotal alteration in its milieu on attorney’s fees for injunction wins, negating an old rule which previously impeded litigants from pursuing these fees unless they had been awarded a final judgment. In a recent ruling, the court decided that litigants in unique circumstances can be deemed a “prevailing party” purely from attaining a preliminary injunction. The case pertained to – interestingly enough – a civil rights class action focusing on a Virginia driver’s license law which was subsequently modified.
A previous regulation prescribed that without clinching a final judgment, litigants could not request attorney’s fees. This posed a significant constraint. However, the recent Fourth Circuit ruling upended this regulation. This means that, in essence, if a litigant manages to secure a preliminary injunction win, they can, in some cases, request for attorney’s fees on the basis that they are a ‘prevailing party.’
The gravity of this ruling can be witnessed in one of its practical applications, such as in a civil rights class action case. The said case was fixated on a Virginia driver’s license law that was later amended. The Fourth Circuit’s ruling adds another layer of complexity, and indeed, a boost to litigants who manage to secure an injunction win.
For more detailed insights, see the full article on Law360 here.
The shift in the regulation is significant and legal professionals working in major corporations and law firms should be prudent to this change, which effectively broadens the circumstances under which they might be able to recover legal fees. It may serve to redefine tactics and strategies when it comes to pursuing preliminary injunctions.