2021 Georgia Code
Title 13 - Contracts
Chapter 1 - General Provisions
§ 13-1-11. Validity and Enforcement of Obligations to Pay Attorney's Fees Upon Notes or Other Evidence of Indebtedness

1. Obligations to pay attorney's fees upon any note or other evidence of indebtedness, in addition to the rate of interest specified therein, shall be valid and enforceable and collectable as a part of such debt if such note or other evidence of indebtedness is collected by or through an attorney after maturity, subject to subsection (b) of this Code section and to the following provisions:
   1. If such note or other evidence of indebtedness provides for attorney's fees in some specific percent of the principal and interest owing thereon, such provision and obligation shall be valid and enforceable up to but not in excess of 15 percent of the principal and interest owing on said note or other evidence of indebtedness;
   2. If such note or other evidence of indebtedness provides for the payment of reasonable attorney's fees without specifying any specific percent, such provision shall be construed to mean 15 percent of the first $500.00 of principal and interest owing on such note or other evidence of indebtedness and 10 percent of the amount of principal and interest owing thereon in excess of $500.00; and
   3. The holder of the note or other evidence of indebtedness or his or her attorney at law shall, after maturity of the obligation, notify in writing the maker, endorser, or party sought to be held on said obligation that the provisions relative to payment of attorney's fees in addition to the principal and interest shall be enforced and that such maker, endorser, or party sought to be held on said obligation has ten days from the receipt of such notice to pay the principal and interest without the attorney's fees. If the maker, endorser, or party sought to be held on any such obligation shall pay the principal and interest in full before the expiration of such time, then the obligation to pay the attorney's fees shall be void and no court shall enforce the agreement. The refusal of a debtor to accept delivery of the notice specified in this paragraph shall be the equivalent of such notice.
2. 1. If, in a civil action, application of the provisions of paragraph (2) of subsection (a) of this Code section will result in an award of attorney's fees in an amount greater than $20,000.00, the party required to pay such fees may, prior to the entry of judgment, petition the court seeking a determination as to the reasonableness of such attorney's fees.
   2. In response to a petition filed under paragraph (1) of this subsection, the party requesting the attorney's fees shall submit an affidavit to the court with evidence of attorney's fees, and the party required to pay such fees may respond to such affidavit.
   3. The court may hold a hearing to decide the matter of attorney's fees or may award attorney's fees based on the written evidence submitted to the court. The amount of attorney's fees awarded shall be an amount found by the court to be reasonable and necessary for asserting the rights of the party requesting attorney's fees.
   4. This subsection shall not apply to a party against whom a default judgment is to be entered pursuant to Code Section 9-11-55.
   5. A civil action instituted solely for the purpose of invoking this subsection shall be void ab initio.
3. Obligations to pay attorney's fees contained in security deeds and bills of sale to secure debt shall be subject to this Code section where applicable.
4. The provisions of this Code section shall not authorize the recovery of attorney's fees in any tort claim.

(Ga. L. 1890-91, p. 221, § 1; Civil Code 1895, § 3667; Ga. L. 1900, p. 53, § 1; Civil Code 1910, § 4252; Code 1933, § 20-506; Ga. L. 1946, p. 761, § 1; Ga. L. 1953, Jan.-Feb. Sess., p. 545, § 1; Ga. L. 1957, p. 264, § 1; Ga. L. 1968, p. 317, § 1; Ga. L. 2010, p. 878, § 13/HB 1387; Ga. L. 2012, p. 1035, § 1/SB 181.)

The 2010 amendment, effective June 3, 2010, part of an Act to revise, modernize, and correct the Code, in subsection (a), in the introductory language, substituted "collectable" for "collectible", added "and" at the end of paragraph (a)(2), and substituted "his or her attorney" for "his attorney" in the first sentence of paragraph (a)(3).

The 2012 amendment, effective July 1, 2012, inserted "subsection (b) of this Code section and to" near the end of the introductory language of subsection (a); added present subsection (b); redesignated former subsection (b) as present subsection (c); and added subsection (d). See Editor's notes for effective date and applicability.

- Liens for attorneys' services generally, § 15-19-14.

- Pursuant to Code Section 28-9-5, in 2012, in subsection (d), "Code" was inserted before "section" and "attorney's" was substituted for "attorneys".

- Ga. L. 2012, p. 1035, § 3/SB 181, approved by the Governor May 2, 2012, provided that the effective date of the amendment to this Code section is July 1, 2011, and that the amendment of this Code section applies to contracts entered on or after July 1, 2011. See Op. Att'y Gen. No. 76-76 for construction of effective date and applicability provisions that precede the date of approval by the Governor.

- For article, "Attorney's Fees for Secured Creditors in Bankruptcy Proceedings," see 13 Ga. St. B.J. 126 (1976). For article discussing attorney's fees as an obligation owed to the secured creditor in bankruptcy proceedings, see 13 Ga. St. B.J. 118 (1977). For article surveying recent judicial developments in commercial law, see 31 Mercer L. Rev. 13 (1979). For article on protecting the secured creditor in business bankruptcies, see 18 Ga. St. B.J. 62 (1981). For survey article on commercial law, see 34 Mercer L. Rev. 31 (1982). For survey article on real property, see 34 Mercer L. Rev. 255 (1982). For annual survey of commercial law, see 38 Mercer L. Rev. 85 (1986). For annual survey of law of real property, see 38 Mercer L. Rev. 319 (1986). For survey article on commercial law, see 44 Mercer L. Rev. 99 (1992). For article, "Commercial Law," see 53 Mercer L. Rev. 153 (2001). For survey article on appellate practice and procedure, see 60 Mercer L. Rev. 21 (2008). For article, "Buying Distressed Commercial Real Estate: What are the Alternatives?," see 16 (No. 4) Ga. St. B.J. 18 (2010). For annual survey on real property, see 69 Mercer L. Rev. 251 (2017).

ANALYSIS

• General Consideration
• Conditions Precedent to Recovery of Attorney's Fees
• Application
• Calculation of Attorney's Fees
• Bankruptcy Proceedings
• Notice

RESEARCH REFERENCES

Am. Jur. 2d.

- 1 Am. Jur. 2d, Actions, §§ 12, 14, 20. 17 Am. Jur. 2d, Contracts, §§ 308 et seq., 313, 317, 318.

Reasonableness of Contingent Fee in Personal Injury Actions, 30 POF2d 197.

- 17 C.J.S., Contracts, §§ 1, 12, 76, 81, 112, 114. 17A C.J.S., Contracts, §§ 519, 520, 530.

- Liability of infant for attorney's services in personal-injury actions, 7 A.L.R. 1011.

Agreement for contingent fee as assignment of interest in judgment, 19 A.L.R. 399.

Agreement that attorney shall receive part of land involved in litigation as within statute of frauds, 21 A.L.R. 352.

Lien of attorney on public fund or property, 24 A.L.R. 933.

Amount or basis of recovery by attorney who takes case on contingent fee, where client discontinues, settles, or compromises, 40 A.L.R. 1529.

Interest on claim for legal services, 52 A.L.R. 197.

Validity of statutory provision for attorneys' fees, 90 A.L.R. 530.

Means of enforcing or making effective attorney's retaining lien, 111 A.L.R. 487.

Expenses incurred by attorney as affecting amount of his compensation under contingent fee contract, 116 A.L.R. 1244.

Right of attorney to set off claim for unrelated services against client's claim for money collected, 173 A.L.R. 429.

Validity of provision in promissory note or other evidence of indebtedness for payment, as attorneys' fees, expenses, and costs of collection, of specified percentage of note, 17 A.L.R.2d 288.

Recovery of attorneys' fees provided for in bill, note, or similar evidence of indebtedness, as affected by opposing party's recovery, 41 A.L.R.2d 677.

Contractual provision for attorney's fees as including allowance for services rendered upon appellate review, 52 A.L.R.2d 863.

Measure or basis of attorney's recovery on express contract fixing noncontingent fees, where he is discharged without cause or fault on his part, 54 A.L.R.2d 604.

What constitutes acceptance or ratification of, or acquiescence in, services rendered by attorney so as to raise implied promise to pay reasonable value thereof, 78 A.L.R.2d 318.

What constitutes "trial," "final trial," or "final hearing" under statute authorizing allowance of attorneys' fees as costs on such proceeding, 100 A.L.R.2d 397.

Necessity of introducing evidence to show reasonableness of attorney's fees where promissory note provides for such fees, 18 A.L.R.3d 733.

Time from which interest begins to run on fee or disbursements owed by client to attorney, 29 A.L.R.3d 824.

Allowance of attorneys' fees in shipper's action against carrier for loss of, or damage to, interstate shipment, 37 A.L.R.3d 1125.

Amount of attorneys' compensation in matters involving real estate, 58 A.L.R.3d 201.

Validity, construction, and effect of contract providing for contingent fee to defendant's attorney, 9 A.L.R.4th 191.

Validity of statute establishing contingent fee scale for attorneys representing parties in medical malpractice actions, 12 A.L.R.4th 23.

Excessiveness or adequacy of attorneys' fees in matters involving real estate - modern cases, 10 A.L.R.5th 448.

Excessiveness or inadequacy of attorney's fees in matters involving commercial and general business activities, 23 A.L.R.5th 241.