Court costs

What Are Court Costs?

Court costs refer to the official charges and expenses levied by the judicial system for initiating and prosecuting a lawsuit or legal proceeding. These expenses are distinct from attorney legal fees and fall under the broader category of Legal Finance, representing a significant financial burden for litigants. Court costs typically encompass filing fees, fees for serving legal documents, witness fees, and charges for court reporter services or transcripts. Understanding these costs is crucial for anyone involved in litigation, as they can accumulate quickly and impact the overall financial outcome of a case.

History and Origin

The concept of charging for access to courts has historical roots dating back centuries. In England, for instance, the Statute of Gloucester during the reign of King Edward I introduced tariffs for using the courts, partly to generate funds and partly to discourage excessive litigation.²⁵ Over time, various systems of court fees developed across different legal traditions.

In the United States, the principle of each party bearing its own attorney fees, known as the "American Rule," evolved alongside the understanding of court costs.²⁴ While distinct, the historical trajectory of both types of expenses highlights an ongoing tension between funding the judicial system and ensuring public access to justice. Historically, court costs were often set by legislatures and remained relatively low compared to what clients paid their lawyers, reflecting a deep-rooted practice of legislative control over such fees.²³

Key Takeaways

Court costs are official fees charged by the judicial system for legal proceedings, separate from attorney fees.
They can include filing fees, service fees, witness fees, and transcript costs.
These costs can significantly impact the overall financial outcome for parties in a lawsuit.
Court costs can be a barrier to justice, especially for low-income individuals.
While typically borne by the parties, in some cases, a prevailing party may recover certain taxable costs from the losing party.

Interpreting Court Costs

Interpreting court costs involves understanding which specific expenses are categorized as such, who is responsible for paying them, and how they might be recovered. In the U.S. federal court system, Title 28, section 1920, of the United States Code specifies what a judge or clerk may tax as costs, including fees of the clerk and marshal, fees for transcripts, witness fees, and costs for making copies necessarily obtained for use in the case. These are often referred to as "taxable costs."²²

It is important to note that even if a party receives "in forma pauperis" status (a waiver of initial filing fees due to inability to pay), they may still be liable for the opposing side's taxable court costs or attorney legal fees if they lose the case.²¹ The specific amounts for various services can be detailed in fee schedules published by the courts, such as those available from the U.S. Courts fees.²⁰

Hypothetical Example

Consider a small business, "GreenTech Solutions," that decides to file a civil case against a supplier for breach of contract.

Initial Filing: GreenTech's first step is to file the complaint with the court. This incurs a filing fee. In a federal district court, this fee might be $402 for a civil action.¹⁹,¹⁸
Service of Process: To officially notify the supplier of the lawsuit, GreenTech must pay for the service of process. This could cost around $65 per defendant, plus mileage.
Discovery Phase: During discovery, GreenTech needs to depose key witnesses. This involves paying court reporter fees (e.g., $300-$500 per deposition), and potentially transcript costs (e.g., $3-$6 per page), and fees for issuing a subpoena to compel witness attendance (e.g., $40-$50 per subpoena).
Expert Witnesses: If GreenTech hires an expert witness to testify on the technical aspects of the contract, their fees (which can be thousands of dollars per day) are part of the overall litigation expense, though often categorized separately from "court costs" by the court itself.
Trial Costs: If the case proceeds to trial, GreenTech might incur fees for courtroom exhibits or daily transcript services.

In this scenario, even before accounting for their own legal fees, GreenTech could easily incur thousands of dollars in court costs and associated litigation expenses. Should GreenTech prevail, it might seek to recover some of these taxable costs from the losing party as part of the final judgment.

Practical Applications

Court costs manifest in various aspects of the financial and legal landscape:

Financial Planning for Litigation: Individuals and businesses must account for potential court costs when budgeting for legal disputes. This is part of a broader financial planning strategy that includes legal fees and other litigation expenses.
Settlement Negotiations: The potential burden of court costs often influences settlement discussions. Parties may opt for arbitration or mediation to avoid protracted trials and the accumulation of significant costs.¹⁷
Policy and Access to Justice: Policymakers and advocacy groups analyze court costs to assess their impact on access to the judicial system. Concerns arise when high fees disproportionately affect low-income individuals, potentially creating barriers to justice. The U.S. Department of Justice has highlighted concerns about the reliance on fines and fees as a revenue source, and their impact on individuals' ability to afford them.¹⁶ Similarly, state courts face criticism for charging defendants hundreds of dollars merely to respond in a civil case, which can hinder justice.¹⁵
Recovery of Costs: In many jurisdictions, statutes or rules of procedure allow a prevailing party to recover certain "taxable costs" from the losing party. This is not automatic and usually requires a specific application to the court. For instance, former President Donald Trump was ordered to pay nearly $400,000 in legal fees to the New York Times after his unsuccessful lawsuit, demonstrating instances where the losing party bears such expenses.¹⁴

Limitations and Criticisms

Despite their necessity for funding the judicial system, court costs face significant limitations and criticisms, primarily concerning their impact on access to justice. One major critique is that these costs can pose an insurmountable barrier for low-income individuals, effectively denying them access to the legal system.¹³ When people cannot afford to pay court fees, it can lead to additional penalties, ruined credit, and in some severe cases, even incarceration for minor infractions.¹² This creates a system where the cost of justice falls disproportionately on those least able to pay.¹¹

Furthermore, the imposition of court costs can sometimes create a conflict of interest, particularly when court and law enforcement budgets depend on revenue generated from fines and fees.¹⁰ This reliance can shift the focus from upholding the Rule of Law to revenue generation, potentially undermining public trust in the impartiality of the justice system.⁹ While some states offer fee waivers, these often only assist the lowest-income individuals, leaving a significant portion of the population burdened by onerous fees.⁸

Court Costs vs. Legal Fees

While often used interchangeably in casual conversation, "court costs" and "legal fees" represent distinct financial components of a lawsuit.

Court Costs: These are official charges levied by the court itself for administrative services and specific legal procedures. Examples include filing fees for initiating a lawsuit (e.g., $350 in U.S. federal district courts), subpoena issuance fees, photocopying charges for court documents, witness attendance fees, and transcript costs from a court reporter.,⁷ These fees are generally fixed or follow a schedule set by the judiciary, as outlined in statutes like 28 U.S. Code § 1914.,⁶
⁵* Legal Fees (Attorney Fees): These are the charges for legal representation provided by an attorney. ⁴They compensate the lawyer for their time, expertise, and services rendered throughout the case. ³Legal fees are typically structured as hourly rates, flat fees for specific services, or contingency fees (a percentage of the settlement or damages awarded). ²Unlike court costs, legal fees are negotiated directly between the client and their attorney. The "American Rule" in the U.S. legal system generally dictates that each party is responsible for their own legal fees, regardless of the outcome of the case, although exceptions exist.
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In essence, court costs are payments to the court for the use of its services, while legal fees are payments to an attorney for their professional services.

FAQs

What happens if I can't afford court costs?

If you cannot afford court costs, you may be able to apply for "in forma pauperis" status, which, if granted, waives certain filing fees and other initial court expenses. However, this waiver does not necessarily protect you from paying the opposing side's costs or legal fees if you lose your civil case.

Are court costs the same in every state?

No, court costs vary significantly by jurisdiction. Federal courts have their own fee schedules, as do individual state and local courts. The specific types of fees and their amounts can differ based on the court level (e.g., municipal, state, federal), the type of case (civil case, criminal case, family, small claims), and the specific services requested.

Can court costs be recovered from the losing party?

In the United States, under what is known as the "American Rule," each party generally pays its own legal fees and court costs. However, there are exceptions. A prevailing party may be able to recover certain "taxable costs" from the losing party if allowed by a specific statute, contract, or court rule. This recovery typically covers a limited set of expenses, such as filing fees, witness fees, and transcript costs, but usually not the full amount of attorney fees.