Tax Costs Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Tax Costs, written in plain English, along with examples of how it is used.
What is Tax Costs?
a contest against the other party in court to reduce or deny the the claims of the court costs motioned by other party who wants all the costs incurred during the period of trial to be borne by opposite party. Simple example would be a winner in court battle may claim charges incurred by them during the period of court trials, to be paid by loosing party. The loosing party motions a contest against such claims in court of law or judge.
History and Meaning of Tax Costs
Tax costs refer to the expenses incurred by a litigant during legal proceedings. These expenses may include witness fees, court fees, fees for evidence production, and other expenses related to the litigation process. The term "taxed" refers to the fees and charges that a judge has deemed necessary and appropriate for reimbursement. When a judge orders the losing party to pay the court costs of the winner, they are said to have "taxed" those costs.
The concept of tax costs has been around for centuries, with some of the earliest known examples coming from English common law. The idea was that if a party were forced to defend itself in court, it was entitled to reimbursement for its expenses. Over time, the rules governing tax costs have evolved and become more complex, with different jurisdictions developing their own rules and regulations.
Examples of Tax Costs
- In a personal injury lawsuit, the plaintiff may ask the court to "tax" the defendant's costs of expert witnesses, court reporters, and other expenses, to be paid by the defendant if they lose the case.
- After a construction dispute is resolved in court, the losing party may be required to pay "taxed" costs, such as fees for document production or witness testimony.
- In a divorce proceeding, the judge may "tax" the filing fees and other expenses incurred by one spouse, ordering the other spouse to pay those costs as part of the final settlement.
Legal Terms Similar to Tax Costs
- Court Fees - Expenses charged by the court, such as filing fees or fees for document production.
- Attorney's Fees - The costs of legal representation during a lawsuit, which may be recoverable if the plaintiff prevails.
- Expert Witness Fees - Fees charged by expert witnesses for their time and expertise in a trial or deposition.