Q: Can I be sued for legal fees related to motion to compel arbitration if I prevail in the arbitration.
I sued former employer for unpaid wages in state court. We had an arbitration agreement in the employment contract. Employer filed to compel arbitration and we moved to arbitration. Employer settled arbitration before the hearing for $xx,xxx to be paid to me in two installments, one remains outstanding.
Now, 9 months later, they are suing me for breach of contract for filing in state court first. They claim to have prevailed in the action. They are claiming damages of $xx,xxx composed of ~30% legal fees and ~70% internal "admin and time spent": with no documentation.
1.) Can this be thrown out as late counterclaim?
2.) Since I was paid in the arbitration and company received nothing didn't I prevail in the overall action?
3.) Don't parties pay own legal fee under "American Rule"?
4.) Can they sue for legal fees 2.5 years after initial filing and 9 months after settling arbitration.
5.) Can they sue for internal time spent dealing with a case?
A: Your first step should be to look at the settlement agreement you signed. Does it say something to the effect that this settles all claims between you? If so, you should win. Otherwise, your argument is that the wage issue was a breach of contract, and thus, as you note, their claim should have been a counterclaim.
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