What are costs of litigation typically awarded for?

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Costs of litigation are typically awarded to the prevailing party as a means of compensating them for the expenses incurred while pursuing the case. This includes a variety of costs related to the legal process, such as court filing fees, costs of service of process, deposition costs, and other necessary expenditures that were essential for the successful resolution of the case.

The rationale behind this funding is to promote justice by ensuring that the party who wins a legal dispute can recover some of the financial burdens they faced while defending their rights or interests in court. It acts as a deterrent against frivolous lawsuits, as it helps to assure that the losing party may have to bear some costs, thereby encouraging responsible litigation practices.

In contrast, the other options refer to costs that are either not typically recoverable or relate to expenses that do not directly contribute to court-awarded litigation costs. For instance, legal advice sought by both parties and expenses incurred by the defendant relate more to their preparations and not to specific litigation costs as awarded by the court. Similarly, while pre-trial negotiations may involve certain costs, they are generally not part of what the court considers when awarding costs of litigation.

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