Can the costs of litigation (e.g. court costs, as well as the parties’ costs of instructing lawyers, experts and other professionals) be recovered from the other side?
Litigation & Dispute Resolution
In general, the winning party is entitled to full compensation from the losing party for reasonable litigation costs (counsel costs, compensation for the party’s own costs, costs for experts and witnesses, etc.) and interest but there are exceptions to this loser-pays principle.
Court fees and other similar costs may be recovered from the counterparty by the party that was successful in the matter, provided the winning party submits those costs to the court and to the counterparty within the stipulated legal deadline.
Nonetheless, despite being allowed, the recovery of lawyers’ fees is bound by law to a very small amount.
Court and expert costs can be recovered from the other party.
However, lawyer fees cannot be recovered, and at the end of each stage of litigation the court awards an amount as legal fees which is minimal in comparison to actual legal fees borne by a party.
Saudi Arabian judges have a discretion to award costs to a successful litigant. In the past this discretion was not exercised frequently, and if costs were awarded, the sums tended to be well below what commercial lawyers charge in Saudi Arabia. However, we have seen increasing willingness on the part of Saudi Arabian judges to award costs, sometimes for substantial sums.
Yes. The main rule is that if the court finds in favour of a party in the whole or in the main, then the other party has to pay the winning party’s legal costs. Exceptions can be made if the court finds that weighty grounds justify exemption, such as that there was justifiable cause to have the case heard, a reasonable settlement offer has been rejected or the case is important to the welfare of the party and the relative strength of the parties justifies an exemption. A court may also award costs partly or in full to a party who has succeeded to a significant degree without winning. When considering such a decision, the court shall have particular regard to the extent to which the court has found in favour of the party and the proportion of the legal costs that relate to that part of the case.
Generally, prevailing parties in the U.S. can recover court costs from the opposing side, including clerk fees and compensation for court-appointed experts and interpreters. However, parties cannot recover attorney’s fees or expert fees unless the statute underlying the action provides for fee shifting. Certain U.S. statutes, such as the federal antitrust laws, allow parties to recover attorney’s fees.
Under Austrian law, the winning party is entitled to full reimbursement of all costs accrued in proportion to its success. This means that if neither party fully succeeds, the court divides the costs on a pro-rata basis and orders only partial reimbursement. Reimbursement is granted for court fees, expenses (such as fees for interpreters and witnesses or the parties’ travelling expenses etc.) and legal fees. Legal fees are, however, only reimbursed in the amount determined pursuant to the official lawyer’s tariff, irrespective of the arrangement between a lawyer and its client. Therefore, the actual lawyers’ costs of a prevailing party are often higher than the amount reimbursed. The decision on costs is an integral part of the court’s final decision and can be contested separately.