Except as attorney's fees are specifically provided for by statute, the measure and mode of compensation of attorneys and counselors at law is left to the agreement, express or implied, of the parties; but parties to actions or proceedings are entitled to their costs, as hereinafter provided.
§ 1021.Measure and Mode of Attorney's Compensation Left to Agreement
Title 14. Of Miscellaneous Provisions · Chapter 6. Of Costs · Last amended 1986 · Last verified July 28, 2026
In one sentenceSection 1021 sets California's default rule that a party's own attorney's fees are a matter of private agreement, not something the losing side pays, unless a statute specifically authorizes fee-shifting, while still preserving each party's separate right to recover litigation costs under this chapter.
Full Text of § 1021
Plain-English Summary
Section 1021 codifies what lawyers call the American rule: absent a statute that says otherwise, each party pays its own attorney out of its own pocket, win or lose. The fee arrangement between a client and lawyer is a private matter of agreement -- the courts don't shift that expense from the losing party to the winner.
The opening clause is doing the real work. "Except as attorney's fees are specifically provided for by statute" is the exception that opens the door to a great deal of California practice. Dozens of statutes scattered through the codes -- including several in this chapter, such as §§ 1021.4, 1021.6, 1021.7, and 1021.9 -- carve out specific situations where a court can make the losing side pay the winner's attorney's fees. Section 1021 is the default that those statutes displace.
Costs are treated differently from fees. Even though Section 1021 leaves attorney's fees to private agreement absent a fee-shifting statute, it confirms in the same sentence that parties are entitled to their costs "as hereinafter provided," pointing ahead to § 1032's general right of a prevailing party to recover costs, and to the detailed list of what counts as a recoverable cost in § 1033.5.
Frequently Asked Questions
Does the losing side in a California lawsuit have to pay the winning side's attorney's fees?
Not automatically. Section 1021 sets the default American rule that each party pays its own attorney's fees unless a specific statute or a contract between the parties says otherwise.
What is the exception in Section 1021 that lets a court award attorney's fees?
The phrase "except as attorney's fees are specifically provided for by statute" opens the door to fee-shifting wherever another statute authorizes it, including several sections later in this chapter.
Does Section 1021 affect a party's right to recover court costs?
No. It confirms that parties are entitled to their costs as provided elsewhere in this chapter, separate from the question of attorney's fees.
Can parties agree by contract to shift attorney's fees?
Yes. Section 1021 leaves the measure and mode of attorney compensation to the parties' express or implied agreement, which includes contractual fee-shifting clauses.
Amendment History
Amended by Stats. 1986, Ch. 377, Sec. 2.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
Also known as: california american rule attorney feesccp 1021 attorney fees agreementwhen can you recover attorney fees in california