Will plaintiff Terry Sanderson have to pay for Gwyneth Paltrow’s legal fees?

Terry Sanderson could be on the hook for covering actress and businesswoman Gwyneth Paltrow’s lawful service fees soon after she prevailed in opposition to him in a court docket battle around a 2016 skiing accident.

A jury last 7 days sided with Paltrow, awarding her the symbolic $1 she questioned for in a countersuit versus Sanderson, who claimed the Goop founder ran into him on a Utah ski slope. The retired optometrist, who had sued Paltrow for $300,000, could now be on the hook for up to $1 million in authorized expenses if the choose presiding about the situation deems him responsible for covering the charge of Paltrow’s protection, according to authorized gurus.

Sanderson’s liability for Paltrow’s legal professional costs hinges on regardless of whether or not he is identified to have introduced the case against Paltrow “in very good faith.” According to a Utah statute, lawyer expenses are rewarded to the prevailing social gathering only if a lawsuit is discovered to be meritless, which is up to a judge to determine. 

“Utah is different from other jurisdictions, wherever the prevailing get together receives specific costs paid out by the other aspect, but not their lawyers fees,” Jessica Corpuz, a shareholder in the litigation section at Weintraub Tobin in Los Angeles, California, explained to CBS MoneyWatch. “If you gain a lawsuit, you get reimbursement of selected statutory costs, but frequently you have to spend own lawyers costs.”

The judge, not the jury, will determine if Sanderson’s lawsuit was filed in lousy faith and if he is responsible for covering Paltrow’s lawful charges, which are likely considerable.

“The jury established she gained the situation, but that won’t indicate he necessarily filed in terrible faith,” Corpuz mentioned. “She now has the burden to prove that he filed this in negative faith — that he realized he failed to have any grounds, that it was frivolous.”

Corpuz speculated that Sanderson to begin with sued Paltrow in hopes she would rapidly capitulate. “He saw a high-worth greenback mark and filed the circumstance wondering she would shell out the funds to make it go away,” Corpuz additional.

Paltrow, for her aspect reported in a assertion after the verdict that she went on demo due to the fact “I felt that acquiescing to a wrong claim compromised my integrity.”

Sanderson’s lawyer, Robert B. Sykes of Sykes McAllister Law Places of work, stated in a statement that his client is weighing how to progress, which includes filing a motion for a new demo, captivating the case to the Utah Supreme Court docket or other authorized alternatives.

“These possibilities will be totally explored involving the attorneys and Terry Sanderson at a afterwards day,” Sykes claimed.

Attorneys for Paltrow declined to remark. 

Paltrow’s authorized fees 

Paltrow’s defense possible charge in the substantial hundreds of thousands of pounds, in accordance to lawful specialists. Corpuz approximated her attorneys expenses in the $500,000 to $1 million assortment.

“Paltrow’s attorneys have most likely billed between $800,000 and $1,000,000 in fees, but that is purely my estimation,” stated Salt Lake City, Utah, legal professional David Cutt of Cutt, Kendell & Olson. “So Sanderson could be searching at a quite significant judgment. The jury evidently recognized that the complete factor was a sham.”

Legal responsibility defense

If he is deemed liable, some of what Sanderson owes in authorized service fees — which includes his individual — could be included by his householders coverage plan, if he has one. 

This kind of insurance policies follows individuals about and delivers them with economical protection outside of the house, way too. Legal responsibility defense, a essential ingredient of home owners insurance policies, suggests men and women are included towards “lawsuits for bodily personal injury or assets injury that you or household members bring about to other individuals,” according to the Coverage Information Institute, or III.

The private legal responsibility portion of a plan pays for the price of your lawful defense in court docket, as perfectly as any court awards — up to your policy’s said restrict. Legal responsibility restrictions typically commence at around $100,000 according to the III. 

“My expectation is that Sanderson’s house owners coverage would shell out the award of expenses up to the coverage limit,” Cutt reported. “He would be personally on the hook for any quantity previously mentioned the boundaries of his protection.”

Courtroom fees and contingency fees

Roger Kohn of Kohn Rath Legislation in Vermont reported that generally, Sanderson would have employed his attorneys on a contingency foundation, that means he would only have to spend his attorneys if he experienced won the circumstance from Paltrow.

“I would be very astonished if his lawyer was not staying paid out on a contingency fee basis, which signifies his lawyer does not get paid out if he loses the case,” Kohn reported. 

Sanderson is probable also dependable for court docket expenses, which in this case could be considerable provided the period of the demo and the number of witnesses termed. 

“Court docket expenditures can be highly-priced when there are a lot of depositions and there is an extended trial,” Kohn reported. A deposition can cost around $1,000, though other service fees involve submitting and transcription costs. 

“This litigation was quite sophisticated and there could be sizeable court prices,” he added.