The law of costs refers to a legal principle that governs the allocation and payment of expenses incurred during legal proceedings. It encompasses rules and regulations that determine which parties are responsible for bearing the costs associated with litigation. These costs may include attorney fees, court fees, administrative expenses, expert witness fees, and other related expenditures.
The law of costs is primarily aimed at ensuring fairness and equity in the legal system. It establishes guidelines on how costs are to be quantified, assessed, and awarded to the prevailing party or parties involved in a lawsuit. In many jurisdictions, the general principle is that "costs follow the event," which means that the losing party is typically obligated to pay the costs of the winning party.
The law of costs is also designed to encourage parties to engage in settlement negotiations and alternative dispute resolution methods. Particularly, parties may consider the potential risks and financial implications of losing a legal battle and subsequently being liable for the opposing party's costs.
However, it is important to note that the law of costs is not absolute and may be subject to judicial discretion. Courts have the authority to deviate from the general rule and order a different cost allocation based on the specific circumstances of the case, such as the conduct of the parties, the complexity of the issues, or any other relevant factors.
Overall, the law of costs plays a significant role in the administration of justice and serves as a mechanism for balancing the interests of the parties involved in litigation.
