Legal Definitions - cost bill

A cost bill, also known as a bill of costs, is a detailed, itemized list of specific expenses incurred by a party during a lawsuit, excluding their attorney's fees. After a court has issued its final decision in a case, the party who wins (referred to as the prevailing party) prepares and submits this statement to the court and to the losing party. The primary purpose of a cost bill is to request that the losing party reimburse the winner for certain court-related expenses.

These recoverable expenses typically include items such as:

• Court filing fees
• Fees for formally serving legal documents (like summonses or subpoenas)
• Fees for witnesses who testify in court
• Compensation for experts appointed by the court
• Costs for printing necessary legal documents

It's important to note that laws usually specify exactly what types of costs can be included in a cost bill, and attorney fees are generally not recoverable through this mechanism unless a specific statute or contractual agreement explicitly allows it.

Examples of a Cost Bill in Action:

• Example 1: Small Business Contract Dispute

  Imagine a small graphic design firm, "Creative Canvas," sues a client for breach of contract after the client refused to pay for completed work. After a trial, the court rules in favor of Creative Canvas, finding the client liable for the unpaid invoice.

  As the prevailing party, Creative Canvas then compiles a cost bill. This list includes the initial court filing fees, the fees paid to a process server to formally deliver the lawsuit documents to the client, and the fees for a court reporter who transcribed a key deposition. Creative Canvas submits this bill to the court, requesting that the losing client reimburse these specific, documented expenses.

  This example demonstrates how a winning business uses a cost bill to recover specific, non-attorney expenses directly related to pursuing a successful lawsuit for breach of contract.

• Example 2: Property Line Dispute

  Consider a homeowner, Mr. Henderson, who successfully defends himself against a lawsuit brought by his neighbor regarding an alleged encroachment on their shared property line. The court ultimately finds that Mr. Henderson's fence is entirely on his own property.

  Since Mr. Henderson is the prevailing party, he can submit a cost bill. His bill might include the fees he paid to file his initial response to the lawsuit, the fees for subpoenaing historical property deeds, and the daily witness fees for a retired surveyor who testified on his behalf regarding the original property boundaries.

  Here, the cost bill allows Mr. Henderson to recover specific expenses he incurred in successfully defending himself against an unfounded claim, illustrating that a winning defendant can also seek reimbursement for certain costs.

• Example 3: Environmental Litigation

  A local environmental advocacy group, "Green Earth Alliance," successfully sues a manufacturing plant for violating state clean water regulations, resulting in a court order requiring the plant to upgrade its wastewater treatment systems.

  The Green Earth Alliance, as the prevailing party, would prepare a cost bill. This could include the fees for filing various legal motions throughout the complex case, the costs of obtaining certified copies of government environmental reports used as evidence, and the fees for an independent hydrologist whose expert testimony was crucial to proving the plant's impact on local water quality.

  This scenario shows a public interest lawsuit where the winning environmental group uses a cost bill to recover the specific, documented expenses that were necessary to bring their successful legal challenge against the manufacturing plant.