View random article

In Law, What Is a Cost Bill?

In the event of civil litigations or legal disputes of a civil nature, damages are often rewarded by a judge or a jury to the plaintiff in the event that it has been proven that the defendant was liable for whatever dispute arose. The damages awarded are usually in the form of monetary restitution in order for the plaintiff to compensate for whatever loss he or she suffered. When this happens, it is possible for the losing party to pay for the litigation fees of the winning litigant. This refers to a cost bill.

The purpose of the cost bill’s existence is to reimburse the winning litigant’s costs of litigation. These costs include all those that accumulated and were incurred during the process of legal action. Thus, the cost bill is essentially a list of expenses much like an accounting logbook or ledger. All the expenses are listed by item and have appropriate descriptions.

A cost bill exists mostly because the court wishes to address the concept that addressing a dispute in a court of law can be an expensive solution. This is because the case may involve reports, paperwork, and expert testimonies. In the event that the litigants cannot agree to the cost bill to be paid, a court of law can determine this and evaluate the bill in order to provide a reasonable and fair amount. It is not possible for a court of law to provide a cost bill whose value is higher than that provided by the winning litigant.


Featured in Finance