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American Rule: Meaning, Exceptions, Example

Financial Concepts

Definition

The American Rule is a rule in the U.S. justice system that says two opposing sides in a legal matter must pay their own attorney fees, regardless of who wins the case. The rationale of the rule is that a plaintiff should not be deterred from bringing a case to court for fear of prohibitive costs. However, in countries that abide by English common law, the rule says the losing party must pay the l

In Panel Profits

In the Panel Profits market platform, American Rule: Meaning, Exceptions, Example applies standard financial concepts principles to comic assets and physical collections.

Common mistakes

Do not infer unobserved prices.