What justifies the majority of costs awarded to a successful party?

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 majority of costs awarded to a successful party in litigation are justified by the principle of compensation for reasonably incurred litigation costs. This principle recognizes that when a party successfully brings a claim, they should not be out of pocket due to the expenses they incurred in pursuing their case. The purpose is to restore the successful party to the position they would have been in had the litigation not occurred.

Reasonably incurred litigation costs include expenses directly related to the legal proceedings, such as court fees, legal representation fees, costs for obtaining expert evidence, and other necessary disbursements. By awarding these costs, the court aims to promote access to justice, ensuring that parties are not deterred from pursuing legitimate claims due to fear of financial burden from litigation expenses.

In contrast, considerations like the party's reason for pursuing litigation, issues related to existential claims, or the timeframe for resolution are not primary justifications for awarding costs, as they do not directly address the financial impact of the litigation process itself on the successful party.

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