Legal Definitions - taxable cost

Taxable cost refers to specific expenses incurred by a party during a legal proceeding that a court may order another party (typically the losing party) to reimburse. These costs are not the entirety of a party's legal fees but are a defined set of expenses, such as court filing fees, certain witness fees, and specific disbursements, which are subject to review and approval ("taxation") by the court based on established rules and fee schedules. The court determines which costs are recoverable and the exact amount.

Here are some examples illustrating "taxable cost":

• Example 1: Civil Litigation for Breach of Contract

  Imagine a small business, "InnovateTech," successfully sues a larger corporation, "GlobalCorp," for breach of a software development contract. InnovateTech wins the lawsuit, and the court awards them damages. In addition to the damages, InnovateTech's legal team submits a bill of costs to the court, detailing expenses like the initial court filing fees, the cost of serving legal documents to GlobalCorp, and the fees for an independent software expert whose testimony was crucial to proving the breach.

  This illustrates "taxable cost" because these specific, itemized expenses (filing fees, service costs, expert witness fees) are not InnovateTech's total legal bill but are particular costs that the court can review and order GlobalCorp to pay to InnovateTech, subject to the court's approval and applicable rules.

• Example 2: Family Law Dispute over Child Custody

  During a contentious child custody battle between two parents, the court orders a psychological evaluation of both parents and the children to determine the best interests of the child. The court initially splits the cost of this evaluation between the parents. However, after the final ruling, the judge finds that one parent's unreasonable and obstructive behavior significantly prolonged the proceedings and necessitated additional, costly court appearances and motions from the other parent.

  Here, the court might deem the additional legal expenses incurred by the cooperative parent due to the other parent's obstruction, such as specific motion filing fees or the cost of a court-ordered mediator, as "taxable costs." The court could then order the uncooperative parent to reimburse the other parent for these specific, court-approved expenses, beyond the initial shared evaluation cost.

• Example 3: Property Line Dispute

  Two neighbors, Mr. Henderson and Ms. Chen, are involved in a lawsuit over the exact boundary line between their properties. Mr. Henderson hires a professional land surveyor whose detailed report and testimony are instrumental in proving his claim about the correct boundary. The court ultimately rules in favor of Mr. Henderson.

  In this scenario, Mr. Henderson could petition the court to include the fees for the land surveyor, the cost of obtaining certified property records, and the court's administrative fees as "taxable costs." If approved by the court, Ms. Chen would be ordered to reimburse Mr. Henderson for these specific, court-sanctioned expenses directly related to the litigation, rather than Mr. Henderson's entire legal bill.