Litigation costs: joint and several liability?

 

Litigation costs: joint and several liability?



The judge usually orders the losing party in a procedure to pay the costs of the other party. How the legal costs are determined can be found in my blog legal costs: how does it work?

Who for which part?

But what if two parties are ordered to pay the costs of the proceedings. Can the winner address each of his opponents only for half? Or are they always jointly and severally liable for payment of the legal costs? Or are they only jointly and severally liable if you claim that?

What is headship?

If several parties are jointly and severally liable, this means that the creditor can hold the joint and several parties liable for the entire amount. This means that the creditor can choose who to address and for what amount.

If one party pays the entire amount to the creditor, he can sue the other parties so that they have all paid an equal part. This is called internal recourse.

How it is

Back to the court order for costs. Is there 'automatic joint and several liability' or must a party to the proceedings claim this?

The Supreme Court says about this:

“In the assessment of the cross-appeal, it must be assumed that the order of Oracle and [defendant] by the Court to pay the costs of the appeal proceedings entails that they are each liable for the entirety and are therefore jointly and severally liable.” [1]

In normal Dutch, the Supreme Court says that an order for costs against several parties is always a joint and several conviction. The consequence of this is that a party to the proceedings does not have to explicitly claim a joint and several conviction of the costs of the proceedings.

There is therefore automatically joint and several liability and both parties are therefore liable for the entire amount. The winning party may decide for itself who it will address for the costs of the proceedings.

More about process costs

This is the fourth part of the series on legal costs. You may also find my other blogs on litigation costs interesting. The other three parts are:

  • Process costs: how does it work?
  • Litigation costs: lawyer's salary
  • Process costs: certainty

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