Litigation Cost Awards in Court Cases

As lawyers who often get asked for consultations and to prepare legal documentation, clients often ask us about litigation cost awards in court cases. When a matter is taken to trial, the parties are asking a judge to make a determination of the issues on their behalf. Each side presents their evidence and argument. Evidence can be tested through cross-examination, and argument can be made at the conclusion of the trial (either orally or written) by the litigant as to why the judge should rule in their favor. A judge then makes a decision on the basis of the evidence and argument before them. The results of a trial can vary, but often one party is deemed to be successful, or more successful than the other.

Understanding Court Costs in Family Law

Family law cases can have implications for both parties beyond simply getting a decision on the issues. One such implication is that of rules governing cost awards in litigation. Costs are a financial contribution towards the expense of litigation incurred by the successful party. They are generally awarded to the successful party, unless there is a “very good reason” not to. But it is important to note that costs are at the discretion of the Court. Things like conduct during a proceeding, and attempts at settlement, can both increase, or decrease, a cost award. It is also important to note that costs can be awarded even when a litigant makes a claim that they are unable to pay costs due to their financial circumstances. Having limited financial resources will not always shelter you from a cost award.

Rules Governing Cost Awards in Litigation

It is important for litigants to be aware of cost consequences, as they can be substantial. The amount of costs awarded is governed by the Civil Procedure Rules. Not only do you give up autonomy over decision making in relation to issues that affect you when you take your matter to trial, but you could also be facing significant financial implications of court cost awards. Depending on the length of your trial, a cost award could be in the tens of thousands of dollars.

In considering whether to pursue litigation, the lawyers at Lenehan Musgrave LLP can assist you in understanding the potential consequences that could result. Contact us for a consultation today.