Legal Definitions - costs of increase

Costs of Increase

In legal contexts, "costs of increase" refers to additional litigation expenses that a successful party in a lawsuit could historically claim from the losing party, beyond the initial, often minimal, amount for "costs" that a jury might have awarded. Historically, juries typically granted only a small, symbolic sum for court costs. To recover the more substantial, actual expenses incurred during the trial process, the winning party would need to make a separate application to the court, detailing these additional expenditures. These extra costs, which effectively increased the total amount recoverable, were known as "costs of increase."

• Example 1: Business Contract Dispute

  Imagine a small business, "InnovateTech," successfully sues a larger corporation, "GlobalCorp," for breach of a software development contract. The jury awards InnovateTech $500,000 in damages and a nominal $500 for court costs. InnovateTech, however, incurred significant expenses during the lengthy trial, including $20,000 for expert witness testimony, $15,000 for extensive document discovery and e-discovery services, and $5,000 in various court filing fees and deposition costs. InnovateTech would then apply to the court to recover these additional $40,000 in actual litigation expenses. These additional costs, sought beyond the jury's initial $500 cost award, represent the costs of increase.

• Example 2: Personal Injury Claim

  Sarah is severely injured in a car accident and sues the at-fault driver. A jury finds in Sarah's favor, awarding her $100,000 for medical bills, lost wages, and pain and suffering, along with a standard $300 for court costs. However, Sarah's legal team spent $8,000 on obtaining detailed medical records, $2,000 on court reporter fees for multiple depositions, and $1,500 on process servers to formally notify witnesses and the defendant. Sarah's attorney would then petition the court to have these specific, itemized expenses reimbursed by the losing party. The $11,500 in additional, actual expenses sought beyond the jury's initial $300 cost award would be considered the costs of increase.

• Example 3: Property Line Dispute

  Two neighbors, Mr. Henderson and Ms. Chen, go to court over a disputed property boundary. The jury rules in favor of Ms. Chen, confirming her property line and awarding her $1,000 for minor damages and a token $250 for court costs. During the trial, Ms. Chen had to pay $7,000 for a professional land survey, $3,000 for a historical property expert to testify, and $1,000 for various administrative fees related to court filings and evidence presentation. Ms. Chen would then ask the court to order Mr. Henderson to pay these specific, documented expenses. These additional $11,000 in expenses, claimed on top of the jury's initial $250 cost award, illustrate the concept of costs of increase.