Cost is a primary consideration in the outcome, determination, and settlement of a lawsuit. In the legal field, if the judgment does not cover the legal fees, it’s not worthwhile. Defendants are more likely to agree to a settlement if the amount is less than the cost of the suit. In this article, readers can Get additional info here about litigation costs and their effects on the outcome of a case.
Why Does the Losing Side Have to Pay the Other Party’s Litigation Costs?
Generally speaking, the law doesn’t force losing parties to pay the winner’s court costs. The prevailing theory is that it allows anyone with a legal grievance to be heard. However, opponents of the practice say that such a system encourages frivolous litigation and that it forces the defendant to pay whenever someone files a case against them.
Complications arise when lawsuits are appealed by a Litigation Lawyer in Santa Barbara CA, or in cases with more than one defendant. Forcing the loser to pay the winner’s court costs often discourages those with valid claims from suing the at-fault party.
Can Litigation Fees be Assessed to the Losing Side Under Some Circumstances?
Despite the rule cited above, litigation fees may be awarded in two instances: when it’s agreed to in a contract, and when the law allows for it. Certain contracts contain clauses stating that the losing side must pay the winner’s legal costs. The majority of these clauses are mutual, but some contracts have clauses that only apply to one of the parties. Judges have the power to annul clauses deemed unfair, which is likely to happen if a contract is made where bargaining power is uneven.
Which Areas of Civil Law Allow for the Recovery of Court Costs?
In areas such as civil rights, copyright, and family law, statutes allow for recovery of legal fees. In these areas, some parties are more likely to commit willful acts against the good of the public, which are punishable through forced payment of the other party’s litigation fees. In certain areas, these costs can be covered if the lawsuit is deemed frivolous. Requiring a plaintiff to pay a defendant’s legal fees may serve as punishment against parties who hire a Litigation Lawyer in Santa Barbara CA to use the court system for harassment rather than as a way to seek justice.