Costs

Costs are amounts a court orders one litigant to pay toward another's legal fees and disbursements. The general rule in Canadian civil litigation is that costs follow the event: the unsuccessful party pays a portion of the successful party's costs. Awards are discretionary and are usually on a partial indemnity basis, covering only a fraction of actual legal fees, with elevated scales reserved for special circumstances such as reprehensible conduct in the litigation.

Costs consequences shape litigation strategy from the outset: the risk of paying the other side's costs disciplines weak claims, and formal settlement offer rules in the various provinces attach enhanced costs consequences to refusing a reasonable offer. Costs in criminal proceedings are rare and exceptional. Because scales, tariffs, and offer-to-settle rules differ by province, costs research must be grounded in the specific jurisdiction's rules and case law.