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Litigation is expensive because you face multiple cost items: court fees, often attorney fees, and possibly costs for a bailiff, witnesses, or experts. Even if you win, you usually do not get these costs fully reimbursed. Therefore, it often pays to first seek a solution out of court.
Court fee
Anyone bringing a case before the court pays court fees: a contribution to the costs of the administration of justice. The amount depends on the type of case and the value at stake (the amount involved). For larger monetary claims, the court fees can add up considerably.
Legal fees
In many civil cases — for example, between two companies in court — a lawyer is mandatory. Legal fees often constitute the largest expense. In sub-district court cases (such as smaller claims and employment cases), a lawyer is not mandatory, but you are often assisted by a legal expert.
Other costs
In addition, there may be costs for a bailiff (for serving a summons or executing a judgment), for witnesses, or for an expert. An appeal also entails additional costs. All these items combined make litigation expensive.
You also contribute if you win
If you win, the loser is often ordered to pay the legal costs — but that compensation rarely covers your actual attorney fees. You therefore almost always keep a portion for yourself. That is why it is wise to weigh the costs against the stakes and first try to resolve the matter through negotiation or mediation.
Frequently Asked Questions
Do I always need a lawyer?
Not always. Not in sub-district court cases, but in many other civil cases at the district court, yes. A lawyer is often the biggest expense.
Will I get my costs back if I win?
Usually partially: the loser is often ordered to pay the legal costs, but that compensation rarely covers your full attorney fees.
How do I keep costs low?
By first seeking an out-of-court solution through negotiation or mediation, and weighing the costs against the interests.
Resolve a dispute as cost-effectively as possible?
Our legal experts and lawyers first seek a solution and litigate where necessary. View our legal assistance or our litigationteam, or schedule a free consultation.
