2022 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.

History. 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.

Cross references.

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

Code Commission notes.

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

Editor’s notes.

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. Atty Gen. No. 76-76 for construction of effective date and applicability provisions that precede the date of approval by the Governor.

Law reviews.

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).