In South Carolina, there is no single attorney’s fees statute that governs every case. The state follows the American Rule: each side pays its own lawyer unless a specific statute authorizes fee-shifting, a contract provides for it, or a court orders fees as a sanction. Dozens of South Carolina statutes create exceptions in defined situations, from unpaid wages to unfair trade practices to suits against the government, and each comes with its own tests and limits.1South Carolina Legislature. South Carolina Code Section 62-5-105 – Costs and Expenses; Attorney’s Fees
Winning the underlying case is only step one. Even when a statute or contract entitles you to fees, a South Carolina judge decides what amount is reasonable, and the final award is often lower than what was requested.
The American Rule and Its Three Exceptions
Courts will not shift fees to the losing side just because someone prevailed. Fee recovery requires an explicit legal hook. In practice, that hook comes from one of three places:
- A statute that authorizes fees in the type of case at issue.
- A contract clause between the parties providing for fee recovery.
- A court order imposing fees as a sanction for frivolous or improper litigation conduct.
Most fee disputes in South Carolina turn on the first two. The statutory list is long but specific, so the first question in any case is whether a statute covers this particular kind of claim.
South Carolina Statutes That Authorize Fee Recovery
Suits Against the State or a Political Subdivision
Under S.C. Code Ann. 15-77-300, a private party who prevails in a civil action against the state or a political subdivision can recover reasonable fees if the government acted without substantial justification. The statute creates a presumption of justification when the government followed a statutory or constitutional mandate that no court has invalidated, so overcoming that presumption takes real evidence.2South Carolina Legislature. South Carolina Code Section 15-77-300 – Allowance of Fees
The award is capped at what the prevailing party actually contracted to pay their attorney. If you had a contingency arrangement or a discounted rate, that ceiling applies. The judge must make specific written findings on each statutory factor before granting an award. Several categories of cases are excluded entirely: public utility rate disputes, licensing board disciplinary actions, habeas corpus and post-conviction relief actions, and child abuse and neglect proceedings.2South Carolina Legislature. South Carolina Code Section 15-77-300 – Allowance of Fees
Withheld Security Deposits and Prepaid Rent
When a landlord fails to return a security deposit or prepaid rent with the required notice, S.C. Code Ann. 27-40-410 lets the tenant recover the wrongfully withheld amount multiplied by three, plus reasonable attorney fees.3South Carolina Legislature. South Carolina Code Section 27-40-410 – Security Deposits; Prepaid Rent
Unfair Trade Practices
South Carolina’s Unfair Trade Practices Act contains one of the strongest fee-shifting hooks in state law. Under S.C. Code Ann. 39-5-140(a), any person who suffers an ascertainable loss from an unfair or deceptive act can bring a private action, and upon finding a violation the court is required to award reasonable fees and costs. Treble damages require proof of a willful or knowing violation, but the fee award itself follows any violation the court finds.4South Carolina Legislature. South Carolina Code Section 39-5-140 – Actions for Damages
Unpaid Wages
Under S.C. Code Ann. 41-10-80(C), employees who successfully sue for wages withheld in violation of South Carolina’s Payment of Wages Act can recover three times the unpaid amount, plus costs and reasonable attorney fees. There is a three-year statute of limitations running from when the wages became due, and waiting past it forfeits the claim.5South Carolina Legislature. South Carolina Code Section 41-10-80 – Violations and Penalties; Civil Actions by Employees; Administrative Review of Civil Penalties
Discrimination Claims
Under the South Carolina Human Affairs Law, a hearing panel that finds a pattern or practice of discrimination can order the violator to reimburse the state for actual costs of the hearing, including reasonable attorney fees.6South Carolina Legislature. South Carolina Code Section 45-9-60 – State Human Affairs Commission Rules of Procedure for Hearings
Family Law
Divorce, custody, and alimony disputes routinely involve fee awards. Under S.C. Code Ann. 20-3-130, judges weigh each party’s financial resources, whether litigation positions were reasonable, and whether either side’s misconduct prolonged the case. Fee awards often serve an equalizing function when one spouse controls most of the marital assets.
Contract-Based Fee Provisions
Commercial leases, service agreements, and construction contracts frequently include clauses entitling the prevailing party to recover attorney fees. South Carolina courts generally enforce these provisions. Two limits still apply: a court can strike down a fee clause that is unconscionable or one-sided, and even where the contract entitles you to fees, the judge retains discretion over whether the amount you claim is reasonable.
Sanctions for Frivolous Litigation
S.C. Code Ann. 15-36-10 authorizes sanctions, including attorney fees, against parties or attorneys who file frivolous pleadings or pursue baseless claims. The test is objective: whether a reasonable attorney in the same circumstances would believe the claim was warranted under existing law or supported a good-faith argument for changing the law.7South Carolina Legislature. South Carolina Code Section 15-36-10 – Frivolous Lawsuits; Signing Pleadings; Imposition of Sanctions
The certification is tied to the act of signing a pleading. An attorney’s signature certifies that the filing is not frivolous, not intended merely to harass, and not interposed solely for delay. Sanctions can follow when any of those certifications proves false under the reasonable-attorney standard.
Federal Fee-Shifting Statutes in Federal Court
If your case involves federal claims and lands in South Carolina’s federal courts, different rules can apply. The most significant federal hook is 42 U.S.C. 1988, which gives courts discretion to award reasonable fees to the prevailing party in cases enforcing federal civil rights protections. That includes claims under 42 U.S.C. 1983, Title VI, Title IX, and the Religious Freedom Restoration Act.8Office of the Law Revision Counsel. 42 U.S. Code 1988 – Proceedings in Vindication of Civil Rights
The standard is asymmetric. Prevailing civil rights plaintiffs are awarded fees as a matter of course, while prevailing defendants can only recover fees if the plaintiff’s case was frivolous or brought in bad faith. That asymmetry is deliberate: without it, plaintiffs with legitimate but modest claims would be deterred by the risk of paying the defense bill after a loss.
How South Carolina Courts Decide What’s Reasonable
Being entitled to fees is only half the fight. Judges scrutinize billing entries closely, and the final award often comes in below what was requested. Hours viewed as excessive, duplicative, or clerical get cut. When two attorneys attend the same deposition without justification, courts typically allow hours for only one.
The Six-Factor Blumberg Test
South Carolina courts evaluate fee requests using six factors established in Blumberg v. Nealco, Inc., 310 S.C. 492 (1993):9Justia. Blumberg v. Nealco, Inc.
- The nature and difficulty of the case. Routine collection matters warrant lower fees than novel constitutional questions.
- The time and labor the case reasonably required.
- The attorney’s professional standing and experience in the relevant area.
- The contingency of compensation, meaning whether the attorney bore the risk of nonpayment.
- Customary fees charged by attorneys in the same locality for comparable work.
- The beneficial results obtained. A complete victory supports a larger award than a partial one.
The Lodestar Method
Many South Carolina courts also apply the lodestar method: a reasonable hourly rate multiplied by the hours reasonably spent on the case. That figure is a starting point the court can adjust up or down using the Blumberg factors. An exceptional result might justify a modest upward adjustment; limited success can pull the number down.
There is no strict proportionality requirement between the fee award and the damages recovered. The U.S. Supreme Court has recognized that requiring proportionality would make it nearly impossible for people with meritorious claims but small potential damages to find representation. Degree of success still matters, and courts can reduce fees when the results were far more limited than what was sought.
Deadlines for Requesting Fees
Missing the deadline to ask for fees is one of the costliest mistakes in this area. In federal court, Rule 54(d)(2) of the Federal Rules of Civil Procedure requires a fee motion to be filed no later than 14 days after entry of judgment unless a statute or court order sets a different deadline. The motion must identify the judgment, specify the legal basis for fees, and either state the amount sought or provide a fair estimate.10Cornell Law School. Federal Rules of Civil Procedure Rule 54 – Judgment; Costs
South Carolina state courts do not have an identical bright-line rule. Fee requests are typically raised in the underlying action or addressed as part of the final order. The safest practice is to plead the fee claim from the start and, if the court does not resolve it in the judgment, move promptly to preserve it. Waiting weeks after judgment without explanation is a good way to lose the opportunity.
Collecting a Fee Award
A fee award is part of the final judgment and carries the same enforcement power as any other money judgment. Under S.C. Code Ann. 15-39-10, a judgment creditor can obtain a writ of execution allowing seizure and sale of the debtor’s non-exempt property once the judgment is filed with the appropriate county clerk.11South Carolina Legislature. South Carolina Code Section 15-39-10 – Kinds of Execution
When assets are not obvious, Rule 69 of the South Carolina Rules of Civil Procedure allows the judgment creditor to examine the debtor and other witnesses using the same discovery tools available during litigation. A debtor who refuses to disclose financial information can be held in contempt.12South Carolina Judicial Branch. Rule 69
Wage garnishment is largely off the table. S.C. Code Ann. 37-5-104 prohibits garnishment of unpaid earnings for consumer credit debts, and South Carolina permits wage garnishment only in narrow circumstances, primarily for child and spousal support.13South Carolina Legislature. South Carolina Code Section 37-5-104 – No Garnishment A fee award in a standard civil or commercial case cannot typically be collected by garnishing wages, which pushes creditors toward writs of execution and bank levies.
Unpaid awards accrue post-judgment interest. Under S.C. Code Ann. 34-31-20, the rate on money judgments equals the prime rate published in the first edition of the Wall Street Journal for that calendar year, plus four percentage points, compounded annually. The South Carolina Supreme Court issues an order each January confirming the applicable rate.14South Carolina Legislature. South Carolina Code Title 34, Chapter 31 – Legal Rate of Interest
If the debtor files for bankruptcy, most attorney fee awards are treated as general unsecured claims and are typically dischargeable. An exception under 11 U.S.C. 523(a)(19) preserves fee awards arising from federal or state securities law violations or common-law fraud in connection with the purchase or sale of securities.15Office of the Law Revision Counsel. 11 U.S. Code 523 – Exceptions to Discharge
Tax Treatment of Recovered Fees
Recovered attorney fees are generally included in your gross income, even when the money is paid directly to your lawyer. The IRS views the full settlement or judgment as your income, including the portion allocated to legal fees. That can leave you owing tax on money you never actually pocketed.
An important exception exists for employment discrimination and certain whistleblower claims. Under Internal Revenue Code Section 62(a)(20), attorney fees and court costs paid in connection with claims of unlawful discrimination or violations of certain federal statutes can be deducted above the line, reducing adjusted gross income directly. The deduction is capped at the amount of income received from the judgment or settlement in the same tax year.16Office of the Law Revision Counsel. 26 U.S. Code 62 – Adjusted Gross Income Defined
For claims outside that context, such as breach of contract or unfair trade practices, no above-the-line deduction is available, and under current law the itemized deduction for legal fees in non-employment matters is limited. Talking to a tax professional before finalizing a settlement is worth the expense, because how the settlement is structured can meaningfully change what you keep.