What is a primary purpose of costs awards according to the rules laid out?

Study for the New South Wales Civil Practice and Procedure Test. Engage with multiple choice questions, comprehensive explanations, and helpful insights. Ace your exam with confidence!

The primary purpose of costs awards, as established in civil procedure rules, is to ensure fair compensation for legal expenses incurred by a party involved in litigation. This principle is founded on the idea that the successful party in a dispute should not have to shoulder the financial burden of legal fees alone, especially when the other party's actions necessitated those expenses. By awarding costs, the court aims to reimburse litigants for the financial strain that arises from pursuing or defending a legal action. This aligns with the overarching goal of the legal system to promote justice and equity, ensuring that parties are not disadvantaged solely because of their ability to bear legal costs.

In contrast, while punitive actions, deterrence of frivolous claims, and expediting court proceedings may be concerns within civil litigation, they do not represent the primary function of costs awards. The focus is primarily on fair compensation rather than punishment or deterrence, which are addressed through other legal mechanisms and principles.

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