Insurance is not rocket science. We explain everything you need to know about litigation costs in this glossary article.
What are litigation costs?
Litigation costs are all costs incurred in a legal dispute before a court. They consist of court costs and extrajudicial costs. Court costs include court fees and court expenses. These costs vary according to the different procedural steps that are required in your case. The extrajudicial costs are all costs incurred for the preparation of the court case. They include lawyers' fees, travel expenses and costs for expert reports.
How high are the litigation costs?
There is no exact answer to this question, as the costs of litigation can vary significantly depending on the case. An important element in assessing the costs is the amount in dispute. As a general rule, the higher the amount in dispute, the higher the court costs and lawyers' fees.
With this litigation cost calculator, you can get an overview of the costs that you might face in your legal matter.
Who pays the litigation costs?
At the end of the lawsuit, the court issues a judicial decision that determines which party will bear the costs of litigation. Usually, this is the party that loses the case.
If the parties only partially win the case, the costs are split. The court can then decide to set the costs against each other. This means that the parties each pay their own extrajudicial costs and half of the court costs.
However, it may also happen that the costs are divided proportionately. In this case, the court determines a quota for each party.