forms must take the form of governing the arrangement between a lawyer and his client. Clients can be left free to pay their attorneys whatever they agree upon, which need not bear any correlation with the amount of reasonable attorneys' fees which the client, if successful, would be entitled to collect from the other party. Suggestions for reform also confront the objection that a rule favoring fee shifting would have a chilling effect on efforts to assert and enforce legal rights because of the risk of liability for the other party's counsel fees when such an effort fails. But even if fee shifting produced greater circumspection in making judgments about whether to pursue legal remedies, that surely would not be clearly for all purposes worse than a system which enables false assertions of legal rights to be made at substantial expense to the other party. There doubtless are situations in which the imbalance of economic or institutional power between parties to a legal controversy, as where the parties are a citizen on one side and the government on a powerful corporation on the other, would have such an inhibiting influence on the weaker party that specific exceptions to a general rule favoring fee shifting, according to which the weaker party would be immune from liability for fees of the powerful one even if he lost on the merits unless it were found that he had prosecuted his claim in bad faith, would be appropriate. But the need for exceptions should not obscure the merit in a general rule favoring fee shifting. American juridical literature has been overwhelmingly critical of the general rule against fee shifting. Many writers have called for reforms to change the rule, albeit the call has generally been provisional in recognition of a need for empirical research to establish the facts as to what the effects of the present rule are and what the precise nature of the reforms should be. The design of specific reforms would be greatly facilitated by research to seek answers to the following kinds of questions: (1) In the case of disputes which reach a stage where an attorney is employed, what does it cost prevailing parties for attorneys' fees? (2) To what extent does the general rule against fee shifting discourage prosecution of valid claims or defenses because of the expense that would be incurred even if successful? (3) To what extent does the general rule encourage prosecution of invalid claims or defenses for the purpose of inducing opposite parties to settle for less than the cost of litigation? (4) Under exceptions to the general rule, does the risk of liability for the other party's fees discourage prosecution of either (a) Valid claims or defenses, or (b) Unfounded claims or defenses. (5) Do exceptions to the general rule encourage settlement of unliquidated money claims in lieu of going to trial over the amount of damages? (6) Do the answers to (2) through (4) vary according to whether the matter in controversy concerns an interest of substance or a point of principle, and if so, what is the nature of such variation? (7) In disputes concerning interests of substance, do the answers to (2) through (5) depend on the value of the interest, and if so, in what way? (8) In disputes over matters of principle, do the answers to (2) through (4) depend on the importance of the principle, and if so, in what way? (9) Do the answers to (2) through (5) depend on the relative economic, strength of the parties, and if so, in what way? (10) Do the answers to (2) through (5) depend on the relative merit, factual or legal, of the respective parties' positions, and if so, in what way? § 2412. Costs. STATUTES TITLE 28.-JUDICIARY AND JUDICIAL PROCEDURE Except as otherwise specifically provided by statute, a judgment for costs, as enumerated in section 1920 of this title but not including the fees and expenses of attorneys may be awarded to the prevailing party in any civil action brought by or against the United States or any agency or official of the United States acting in his official capacity, in any court having jurisdiction of such action. A judgment for costs when taxes against the Government shall, in an amount established by statute or court rule or order, be limited to reimbursing in whole or in part the prevailing party for the costs incurred by him in the litigation. Payment of a judgment for costs shall be as provided in section 2414 and section 2517 of this title for the payment of judgments against the United States. (June 25, 1948, ch. 636, 62 Stat.-973; July 18, 1966, Pub. L. 89-507, § 1, 80 Stat. 308.) LEGISLATIVE HISTORY Reviser's Note.-Based on title 28, U. S. C., 1940 ed., §§ 258, 931 (a) Mar. 3, 1911, ch. 231, § 152, 36 Stat. 1138; Aug. 2, 1946, ch. 753, § 410 (a), 60 Stat. 843). Section consolidates the last sentence of section 931 (a) of title 28, U. S. C., 1940 ed., with section 258 of said title 28. For other provisions of said section 931 (a), see Distribution Table. Subsection (a) is new. It follows the well-know common-law rule that a sovereign is not liable for costs unles specific provision for such liability is made by law. This is a corollary to the rule that a sovereign cannot be sued without its consent. Many enactments of Congress relating to fees and costs contain specific exceptions as to the liability of the United States. (See, for example, section 548 of title 28, U. S. C. 1940 ed.) A uniform rule, embodied in this section, will make such specific exceptions unnecessary. Subsection (b) incorporates section 258 of title 28, U. S. C., 1940 ed. Subsection (c) incorporates the costs provisions of section 931 (a) of title 28, U. S. C., 1940 ed. Words "and for summoning the same," after "witnesses," were omitted from subsection (b) as covered by "those actually incurred for witnesses." Changes were made in phraseology. AMENDMENTS 1966 Pub. L. 89-507 empowered a court having jurisdiction to award judgment for costs, except as otherwise specifically provided by statute, to the prevailing party in any action brought by or against the United States or any agency or official of the United States acting in his official capacity, limited the judgment for costs when taxed against the Government to reimbursing in whole or in part the prevailing party for costs incurred by him in the litigation, required the payments of a judgment for costs to be as provided in section 2414 and section 2517 of this title for the payment of judgments against the United States, and eliminated provisions which limited the liability of the United States for fees and costs to those cases in which liability was expressed provided for by Act of Congress, permitted the district court or the Court of Claims, in an action under section 1346 (a) or 1491 of this title if the United States put in issue plaintiff's right to recover, to allow costs to the prevailing party from the time of joining such issue, and which authorized the allowance of costs to the successful claimant in an action under section 1346(b) of this title. PROVIDING FOR OR REQUIRING COURT AWARDS OR PACKERS AND STOCKYARDS ACT, § 309 (F) TITLE 7.-AGRICULTURE § 210. Proceedings before Secretary for violations generally; action to enforce orders. (f) If the defendant does not comply with an order for the payment of money within the time limit in such order, the complainant, or any person for whose benefit such order was made, may within one year of the date of the order file in the district court of the United States for the district in which he resides or in which is located the principal place of business of the defendant or in any State court having general jurisdiction of the parties, a petition setting forth briefly the causes for which he claims damages, and the order of the Secretary in the premises. Such suit in the district court shall proceed in all respects like other civil suits for damages except that the findings and orders of the Secretary shall be prima facie evidence of the facts therein stated, and the petitioner shall not be liable for costs in the district court nor for costs at any subsequent stage of the proceedings unless they accrue upon his appeal. If the petitioner finally prevails, he shall be allowed a reasonable attorney's fee to be taxed and collected as a part of the costs of the suit. (Aug. 15, 1921, ch. § 309, 42 Stat. 165.) CROSS REFERENCES Application to certain licensees, see section 218c of this title. Enforcement by Secretary of Agriculture under this chapter, with respect to activities subject to this chapter, of requirements imposed under section 1601 et seq. of Title 15, Commerce and Trade, see section 1607 (a) (6) of Title 15. Enforcement of liability to individuals for violations, by complaint to Secretary as provided in this section, see section 209 of this title. FEDERAL RULES OF CIVIL PROCEDURE Costs, application of Rules of Civil Procedure, see rule 54, Title 28, Appendix, Judiciary and Judicial Procedure. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 202, 209, 211, 218c of this title; title 28 section 2342. PERISHABLE AGRICULTURE COMMODITIES ACT, § 7 (B) § 499g. Reparation order. TITLE 7.-AGRICULTURE (b) Failure to comply with order of Secretary; suit to enforce liability; order as evidence; costs and fees.-If any commission merchant, dealer, or broker does not pay the reparation award within the time specified in the Secretary's order, the complainant, or any person for whose benefit such order was made, may within three years of the date of the order file in the district court of the United States for the district in which he resides or in which is located the principal place of business of the commission merchant, dealer, or broker, or in any State court having general jurisdiction of the parties, a petition setting forth briefly the causes for which he claims dainages and the order of the Secretary in the premises. The orders, writs, and processes of the district courts may in these cases run, be served, and be returnable anywhere in the United States. Such suit in the district court shall proceed in all respects like other civil suits for damages, except that the findings and orders of the Secretary shall be prima-facie evidence of the facts therein stated, and the petitioner shall not be liable for costs in the district court, nor for costs at any subsequent state of the proceedings, unless they accrue upon his appeal. If the petitioner finally prevails, he shall be allowed a reasonable attorney's fee, to be taxed and collected as a part of the costs of the suit; CLAYTON ACT, § 4 TITLE 15.-COMMERCE AND TRADE § 15. Suits by persons injured; amount of recovery. Any person who shall be injured in his business or property by reason of anything forbidden in the antitrust laws may sue therefor in any district court of the United States in the district in which the defendant resides or shall recover threefold the damages by him sustained, and the cost of suit, is found or has an agent, without respect to the amount in controversy, and including a reasonable attorney's fee. (Oct. 15, 1914, ch. 323, § 4, 38 Stat. 731.) CODIFICATION Section applies to the provisions of this chapter generally and supersedes two former similar sections enacted by act July 2, 1890, ch. 647, § 7, 26 Stat. 210, and act Aug. 27, 1894, ch. 349, § 77, 28 Stat. 570, each of which were restricted in operation to the particular act cited. REPEALS Section 7 of act July 2, 1890, ch. 647, 26 Stat. 210, which was superseded by this section, was repealed by act July 7, 1955, ch. 283, § 3, 69 Stat. 283. For effective date of repeal, see note set out under section 15b of this title. CROSS REFERENCES Jurisdiction of civil action or proceeding arising under commerce and anti-trust regulations, see section 1337 of Title 28, Judiciary and Judicial Procedure. Limitation of action, suspension of, see note under section 16 of this title. Taxation of amounts received as damages or injuries under this section, see section 1306 of Title 26, Internal Revenue Code. Venue and service of process in action against corporation, see section 22 of this title. Venue of district courts, see section 1391 et seq. of Title 28, Judiciary and Judicial Procedure. FEDERAL RULES OF CIVIL PROCEDURE Costs, see rule 54, Title 28, Appendix, Judiciary and Judicial Procedure. Effect of rule 54 on this section, see note by Advisory Committee under rule 54. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 15b, 1012, 1013 of this title; title 7 section 225; title 26 sections 162, 186; title 42 section 2135. SECURITIES ACT OF 1933, § 11E TITLE 15.-COMMERCE AND TRADE 877k. Civil liabilities on account of false registration statement. (e) The suit authorized under subsection (a) of this section may be to recover such damages as shall represent the difference between the amount paid for the security (not exceeding the price at which the security was offered to the public) and (1) the value thereof as of the time such suit was brought, or (2) the price at which such security shall have been disposed of in the market before suit, or (3) the price at which such security shall have been disposed of after suit but before judgment if such damages shall be less than the damages representing the difference between the amount paid for the security (not exceeding the price at which the security was offered to the public) and the value thereof as of the time such suit was brought: Provided, That if the defendant proves that any portion or all of such damages represents other than the depreciation in value of such security resulting from such part of the registration statement, with respect to which his liability is asserted, not being true or omitting to state a material fact required to be stated therein or necessary to make the statements therein not misleading, such portion of or all such damages shall not be recoverable. In no event shall any underwriter (unless such underwriter shall have knowingly received from the issuer for acting as an underwriter some benefit, directly or indirectly, in which all other underwriters similarly situated did not share in proportion to their respective interests in the underwriting) be liable in any suit or as a consequence of suits authorized under subsection (a) of this section for damages in excess of the total price at which the securities underwritten by him and distributed to the public were offered to the public. In any suit under this or any other section of this subchapter the court may, in its discretion, require an undertaking for the payment of the costs of such suit, including reasonable attorney's fees, and if judgment shall be rendered against a party litigant, upon the motion of the other party litigant, such costs may be assessed in favor of such party litigant (whether or not such undertaking has been required) if the court believes the suit or the defense to have been without merit, in an amount sufficient to reimburse him for the reasonable expenses incurred by him, in connection with such suit, such costs to be taxed in the manner usually provided for taxing of costs in the court in which the suit was heard. TRUST INDENTURE ACT, § 323 (A) TITLE 15.-COMMERCE AND TRADE § 77www. Liability for misleading statements. (a) Any person who shall make or cause to be made any statement in any application, report, or document filed with the Commission pursuant to any provisions of this subchapter, or any rule, regulation, or order thereunder, which statement was at the time and in the light of the circumstances under which it was made false or misleading with respect to any material fact, or who shall omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, shall be liable to any person (not knowing that such statement was false or misleading or of such omission) who, in reliance upon such statement or omission, shall have purchased or sold a security issued under the indenture to which such application, report, or document relates, for damages caused by such reliance, unless the person sued shall prove that he acted in good faith and had no knowledge that such statement was false or misleading or of such omission. A person seeking to enforce such liability may sue at law or in equity in any court of competent jurisdiction. In any such suit the court may, in its discretion, require an undertaking for the payment of the costs of such suit and assess reasonable costs, including reasonable attorneys' fees, against either party litigant, having due regard to the merits and good faith of the suit or defense. No action shall be maintained to enforce any liability created under this section unless brought within one year after the discovery of the facts constituting the cause of action and within three years after such cause of action accrued. SECURITIES EXCHANGE ACT OF 1934, § 9(E) TITLE 15.-COMMERCE AND TRADE 8781. Manipulation of security prices. (e) Any person who willfully participates in any act or transaction in violation of subsections (a), (b), or (c) of this section, shall be liable to any |