Costs in Legal Terms: A Comprehensive Guide to Understanding

Definition & Meaning

Costs refer to the expenses incurred in the pursuit of legal action, which may be recovered from the losing party in a lawsuit. These costs are typically defined by statutes or court rules and generally do not include attorney fees under the American Rule. Common court costs include:

Filing fees
Charges for serving legal documents
Court reporter fees for depositions
Costs for transcripts and copying documents

Attorney fees may only be included as court costs if a specific statute allows it or if there is a contractual provision for such fees. If a losing party disputes the claimed costs, they can request a hearing to challenge them, known as "taxing costs."

Table of content

Legal Use & context

Costs are relevant in various legal contexts, including civil litigation, where they can significantly impact the financial outcome of a case. Understanding costs is essential for parties involved in lawsuits, as they can affect decisions about pursuing or settling claims. Users can utilize legal templates from US Legal Forms to manage their legal costs effectively, ensuring they understand what can be recovered in their specific cases.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Example 1: In a civil lawsuit over a contract dispute, the plaintiff wins and is awarded $5,000 in court costs, which includes filing fees and costs for serving subpoenas.

Example 2: (hypothetical example) A defendant in a personal injury case disputes the plaintiff's claimed costs of $1,200 for expert witness fees, arguing that they are not recoverable under the applicable law.

Relevant laws & statutes

R.Civ.P. 54(d)(1) and Fed.R.Civ.P. 54(d)(1) are significant rules that outline the presumption in favor of awarding costs to the prevailing party, except where the court directs otherwise.

State-by-state differences

State	Cost Recovery Rules
California	Allows recovery of costs as defined by statute, including certain attorney fees in specific cases.
New York	Follows the American Rule; attorney fees are generally not recoverable unless specified by statute or contract.
Texas	Permits recovery of costs, including attorney fees, if provided for in law or contract.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term	Definition
Costs	Expenses recoverable from the losing party in a lawsuit, excluding attorney fees unless specified.
Attorney Fees	Fees paid to legal counsel, generally not recoverable as costs under the American Rule.
Damages	Monetary compensation awarded to a party for loss or injury, separate from costs.

Common misunderstandings

What to do if this term applies to you

If you are involved in a legal dispute, it is crucial to understand the costs associated with your case. Consider consulting with a legal professional to assess your situation. Additionally, you can explore US Legal Forms for templates that can help you manage your costs effectively and understand what may be recoverable.

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Quick facts

Typical costs include filing fees, service charges, and court reporter fees.
Attorney fees are generally not recoverable unless specified by law or contract.
Costs can vary significantly by state.
Disputes over costs can be resolved through a motion to "tax costs."