Court costs

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Court costs are the costs of handling a case, which, depending on legal rules, may or may not include the costs of the various parties in a lawsuit in addition to the costs of the court itself. Court costs can reach very high amounts, often far beyond the actually monetary worth of a case. Cases are known in which one party won the case, but lost more than the monetary in court costs. Court costs may be 'awarded' to one or both parties in a lawsuit, or they may be waived.

In Australia, the losing side is ordered to pay the winning side's costs. This acts as a significant disincentive to bringing forward court cases. Usually, the winning party is not able to recover from the losing party the full amount of his or her own solicitor's costs, and has to pay the shortfall out of his or her own pocket. The loser pays principle does not apply to the United States legal system, although a separate system does operate there.