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Publication date: 17.05.2024
Distribution of court costs
The procedure and features of the distribution of court costs between the parties:
1. Court fee:
The court fee is assigned to the parties in proportion to the size of the satisfied claims.
2. Other court costs:
- If the claim is successful: costs are borne by the defendant.
- If the claim is rejected: costs are borne by the claimant.
- In case of partial satisfaction of the claim: costs are distributed between both parties in proportion to the size of the satisfied claims.
3. Allocation criteria:
- The court takes into account whether the costs are related to the consideration of the case.
- The amount of expenses must be justified and proportionate to the subject of the dispute, including the price of the claim and the importance of the case for the parties.
- The behavior of the parties during the proceedings also affects the allocation of costs.
4. Amount of court costs:
- If the declared amount of expenses significantly exceeds the estimated calculation, the court may refuse to reimburse this excess.
- If the amount of expenses is less than the estimated calculation, the court may refuse compensation in part or in full, if the party proves good reasons for reducing this amount.
5. Abuse of procedural rights:
In case of abuse of procedural rights by a party, the court may impose legal costs on it regardless of the outcome of the dispute.
6. Partial satisfaction of the claim:
In the event that the court imposed legal costs on both parties in proportion to the size of the satisfied claims, a situation may arise where one party has a greater amount of costs than the other. The court may order that party to pay the difference to the other party.In this case, both parties are released from the obligation to pay each other another part of court costs.
7. Seizure of property:
The court has the right to attach the money or property of the party on whom the costs have been imposed. This may refer to the costs associated with the involvement of witnesses, specialists, translators, experts, conducting an examination, requesting evidence, reviewing evidence, etc. Garnishment may be applied within the limits of the amounts awarded for recovery, to secure the claim.
8 Legal costs of a third party:
If the third party does not make independent claims on the subject of the dispute, his court costs are collected in his favor.
The amount of recovery depends on whether this person supported or denied the claims.
9. Change of the decision by the appellate or cassation instance:
If the court of appeal or cassation instance changes the decision or adopts a new one, it also changes the distribution of court costs in accordance with the new decision.
The procedure and features of the allocation of costs in case of recognition of the claim, opening of the proceedings in the case or leaving the claim without consideration:
1. Conclusion of a settlement agreement before the adoption of a decision:
If the parties concluded a settlement agreement before the decision of the first-instance court, the plaintiff's refusal of the claim or the recognition of the claim by the defendant, the court decides on the return to the plaintiff of 50% of the court fee paid when filing the claim.
If a settlement is reached as a result of mediation, the refund is 60% of the court fee.
2.Appellate or cassation instance:
In the event of a settlement agreement, refusal of the claim or recognition of the claim by the defendant at the stage of review of the decision in the appeal or cassation procedure, the court decides the issue of returning to the complainant (applicant) 50% of the court fee paid when filing the corresponding appeal or cassation complaint.
If a settlement is reached as a result of mediation, the refund is 60% of the court fee.
3. Refusal of the claim by the plaintiff:
The expenses incurred by the plaintiff are not reimbursed by the defendant.
The defendant's costs shall be charged to the plaintiff if the claim was dismissed after it was brought.
4. Conclusion of a settlement agreement without providing for the distribution of costs:
If the parties did not provide for the procedure for the distribution of court costs when concluding a settlement agreement, each party shall bear half of the costs.
5. Closing the proceedings in the case or leaving the claim without consideration:
The defendant has the right to claim compensation for the costs incurred by him, if the case was closed or the claim was left without consideration due to unreasonable actions of the plaintiff.
6. Distribution of court costs:
The court may decide on the distribution of court costs within fifteen days from the date of the decision to close the proceedings in the case or leave the claim without consideration or the decision to satisfy the claim in connection with its recognition.
These principles help ensure a fair allocation of costs between the parties in court proceedings.
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