N.Y. General Obligations Law § 5-327: Consumers' right to recover attorney's fees in actions arising out of consumer contracts

§ 5-327. Consumers' right to recover attorney's fees in actions

arising out of consumer contracts. 1. As used in this section, the

following terms shall have the following meanings:

(a) "Consumer contract" means a written agreement entered into between

a creditor, seller or lessor as one party with a natural person who is

the debtor, buyer or lessee as the second party, and the money, other

personal property or services which are the subject of the transaction

are primarily for personal, family or household purposes;

(b) "Creditor" means a person who regularly extends, or arranges for

the extension of, credit which is payable by agreement in more than four

installments or for which the payment of a finance charge is or may be

required;

(c) "Seller" means a person who sells or provides or agrees to sell or

provide the subject of a consumer transaction.

(d) "Lessor" means a person who regularly leases, or arranges for the

lease of, personal property which is the subject of a consumer contract.

2. Whenever a consumer contract provides that the creditor, seller or

lessor may recover attorney's fees and expenses incurred as the result

of a breach of any contractual obligation by the debtor, buyer or

lessee, it shall be implied that the creditor, seller or lessor shall

pay the attorney's fees and expenses of the debtor, buyer or lessee

incurred as the result of a breach of any contractual obligation by the

creditor, seller or lessor, or in the successful defense of any action

arising out of the contract commenced by the creditor, seller or lessor.

Any limitations on attorney's fees recoverable by the creditor, seller

or lessor shall also be applicable to attorney's fees recoverable by the

debtor, buyer or lessee under this section. Any waiver of this section

shall be void as against public policy.