costs
Definition
Costs refers to the fees and expenses involved in taking a legal dispute to court, including court filing fees, attorney fees, and other administrative charges. In many cases, a judge can order the losing party to pay the winning party's costs, which means a loss in court can end up being far more expensive than just the original dispute.
Example
If a customer sues your business for $5,000 and loses, the judge might order that customer to reimburse you for the $3,000 you spent on your attorney and court fees.
Watch Out
Even if you win a case, there is no guarantee the court will award you full costs, so you should always weigh your legal expenses against what you actually stand to recover before pursuing or defending a lawsuit.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.