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Legal Terms - costs pl. n. Amounts due for legal representation. There is a differentiation made between costs associated with contentious and noncontentious situations, or more broadly, between the two types of costs. Typically, a lawyer's expenses are separated into two categories: disbursements, which are any out-of-pocket expenses he may have incurred throughout the case, and profit costs, which show the lawyer's profit and overheads.
The usual rule in civil litigation is that the loser of the case must pay the winner's expenses (this was previously known as costs follow the event). However, the court has broad discretion to make an award regarding the case's costs. The basis for allocating costs will be determined by the court's order. This is the typical basis for adversarial litigation, where the losing party pays a reasonable amount to cover all costs reasonably paid by the winning party (see also INDEMNITY BASIS). The amount of costs payable will be decided by the court or by a *costs officer* if the court does not make an order for payment of fixed costs, which is the sum permitted in respect of lawyers' expenses.
The usual rule in civil litigation is that the loser of the case must pay the winner's expenses (this was previously known as costs follow the event). However, the court has broad discretion to make an award regarding the case's costs. The basis for allocating costs will be determined by the court's order. This is the typical basis for adversarial litigation, where the losing party pays a reasonable amount to cover all costs reasonably paid by the winning party (see also INDEMNITY BASIS). The amount of costs payable will be decided by the court or by a *costs officer* if the court does not make an order for payment of fixed costs, which is the sum permitted in respect of lawyers' expenses.
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