What is the significance of attorney's fees being recoverable by the prevailing party?

The significance of attorney's fees being recoverable by the prevailing party primarily serves as a deterrent to filing frivolous lawsuits. When parties know that the losing side might have to pay the legal fees of the prevailing party, it discourages individuals and entities from pursuing cases that lack merit. This helps to ensure that only legitimate claims are brought to court, promoting the efficient use of judicial resources and upholding the integrity of the legal system.

While the other options might relate to aspects of legal proceedings or alternative dispute resolution mechanisms, the core purpose of the recoverability of attorney's fees lies in promoting responsible litigation and minimizing the burden of unworthy claims on the courts. This practice ultimately supports fairness in the legal process and encourages parties to evaluate the strength of their cases before proceeding with litigation.