Attorney's fees can significantly impact the outcome of business litigation. Typically, recovery of attorney's fees is governed either by contract or statute. In most business contracts, an attorney's fees clause specifies that the prevailing party can recover their reasonable attorneys’ fees. This clause can create a financial incentive for plaintiffs' attorneys to pursue lawsuits over small claims, hoping to recover their fees.

On the other hand, having an attorney's fees clause can be beneficial if you anticipate being the plaintiff in smaller claims. It ensures that if you prevail, your legal fees will be covered, making it more financially justifiable to pursue legal action. This can be especially important for businesses that may otherwise find the cost of litigation prohibitive.

However, including such a clause requires careful consideration of the potential risks and benefits. While it can deter frivolous claims by ensuring the loser pays, it can also encourage litigation over minor disputes. Therefore, businesses should carefully draft these clauses and seek legal advice from a business attorney to balance the potential advantages and drawbacks.