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§ 25-824.01.Frivolous actions; attorney's fees; costs; determination of amount.

Article 8: Pleadings · Last amended 1987 · Last verified July 22, 2026

In one sentenceThis section directs a Nebraska court to use its discretion, explain its reasoning, and weigh ten listed factors when deciding how much to award in attorney’s fees and costs against a party or attorney found to have brought or defended a frivolous or bad-faith claim under section 25-824.

Full Text of § 25-824.01

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In determining the amount of a cost or an attorney's fee award pursuant to subsection (2) of section 25-824, the court shall exercise its sound discretion. When granting an award of costs and attorney's fees, the court shall specifically set forth the reasons for such award and shall, in determining whether to assess
attorney's fees and costs and the amount to be assessed against offending attorneys and parties, consider the following factors, including, but not limited to: (1) The extent to which any effort was made to determine the validity of any action or claim before the action was asserted; (2) the extent of any effort made after the commencement of an action to reduce the number of claims or defenses being asserted or to dismiss claims or defenses that have been found not to be valid; (3) the availability of facts to assist the party to determine the validity of a claim or defense; (4) the relative financial position of the parties involved; (5) whether or not the action was prosecuted or defended in whole or in part in bad faith; (6) whether or not issues of fact, determinative of the validity of a party's claim or defense, were reasonably in conflict; (7) the extent to which the party prevailed with respect to the amount of and number of claims in controversy; (8) the amount or conditions of any offer of judgment or settlement in relation to the amount or conditions of the ultimate relief granted by the court; (9) the extent to which a reasonable effort was made to determine prior to the time of filing of a claim that all parties sued or joined were proper parties owing a legally defined duty to the plaintiff or defendant; and (10) the extent of any effort made after the commencement of an action to reduce the number of parties in the action.

Source

Laws 1987, LB 261, § 2.

Plain-English Summary

A finding of frivolousness under section 25-824 does not fix the dollar amount of the fee award — section 25-824.01 governs that separate question. The court exercises sound discretion in setting the amount, and when it grants an award, it must specifically set forth the reasons for the award instead of announcing a bare number.

The section lists ten factors the court considers, though the list is not exhaustive. Several look backward at how the case was litigated: what effort went into checking a claim or defense before it was asserted, what effort went into narrowing or dismissing weak claims or defenses after the case began, and how available the facts were to help a party judge a claim’s validity. Others weigh the parties against each other: their relative financial positions, whether the case was prosecuted or defended in bad faith, and whether genuine factual disputes existed. The remaining factors look at outcomes and diligence — how much of the claimed relief the prevailing party won, how an offer of judgment or settlement compared to what the court ultimately awarded, and what effort was made to identify the proper parties and to reduce their number as the case progressed.

Together, these factors let a court calibrate a fee award to the degree of fault and the practical realities of the litigation, rather than applying an automatic penalty every time a claim or defense is found frivolous.

Frequently Asked Questions

Does a frivolous-filing finding automatically set the amount of the fee award?

No. Section 25-824.01 requires the court to exercise sound discretion and weigh a list of factors in setting the amount, rather than applying an automatic figure.

Must the court explain why it picked a particular fee amount?

Yes. When granting an award of costs and attorney’s fees, the court must specifically set forth the reasons for the award.

Does the relative wealth of the parties matter to the amount awarded?

Yes. The relative financial position of the parties involved is one of the listed factors the court considers.

Does an offer of judgment or settlement affect the fee amount?

Yes. The court considers the amount or conditions of any offer of judgment or settlement compared with the ultimate relief the court granted.

What if I dropped some claims early once discovery showed they were weak?

The court considers the effort made after the action began to reduce the number of claims or defenses, or to dismiss ones found invalid, which can weigh in the offending party’s favor.

Does partial success at trial reduce a party’s exposure to a fee award?

It can. The court weighs the extent to which the party prevailed with respect to the amount and number of claims in controversy.

Source & verification. Section text and the amendment-history citation are reproduced verbatim from the Nebraska Legislature, Revisor of Statutes, enacted by the Nebraska Legislature. Last verified July 22, 2026. · Official source
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