Out-Of-Pocket Expenses Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Out-Of-Pocket Expenses, written in plain English, along with examples of how it is used.
What is Out-Of-Pocket Expenses?
It refers to the expenses that has incurred for a court case and where such expenses were never mentioned but are necessary expenses. Such expenses can be reimbursed by the defendant when they loose their title provided such is mentioned in the legal contract.
History and Meaning of Out-Of-Pocket Expenses
Out-of-pocket expenses refer to expenses that are paid by a person from their own funds or resources, rather than being reimbursed by an insurance company or any other third party. In the legal context, out-of-pocket expenses typically refer to expenses incurred by a litigant during the course of a lawsuit, such as filing fees, travel expenses, and fees paid to expert witnesses. These expenses are not typically recoverable by the litigant unless there is a specific provision in the law that requires the other party to pay them.
Examples of Out-Of-Pocket Expenses
- In a personal injury lawsuit, a plaintiff may incur out-of-pocket expenses such as medical bills, lost wages, and travel expenses related to their injury.
- In a divorce proceeding, a litigant may incur out-of-pocket expenses such as attorney's fees, court filing fees, and fees paid to a private investigator.
- In a business dispute, a plaintiff may incur out-of-pocket expenses such as accounting fees, expert witness fees, and travel expenses related to their case.
Legal Terms Similar to Out-Of-Pocket Expenses
- Reimbursable expenses: Expenses that may be reimbursed by a third party, such as an insurance company or the other party in a lawsuit.
- Statutory damages: A type of damages that are predetermined by law and do not require proof of actual losses.
- Court costs: Fees associated with filing a lawsuit or undertaking other legal proceedings.