The right of an attorney to claim payment of costs from a third party

Abstract

Parties to a contract sometimes agree that one party will pay certain costs to the other party’s attorney. A typical clause to this effect, which featured in Barnett v Abe Swersky & Associates (“Barnett”), reads as follows:

“The purchaser undertakes and agrees to effect payment to Abe Swersky & Associates of all their costs as between attorney and client relating to the drafting and drawing of these presents and the implementation of the terms and conditions thereof … .”