Many clients ask us whether the opposing party must reimburse their attorney’s fees if they win a lawsuit. It seems logical: if you win, shouldn’t the losing party cover all the costs? Unfortunately, this is not the case. Below, we explain how the reimbursement of attorney’s fees works and what you should consider before starting a lawsuit.
Litigation Costs
In the Netherlands, the court often rules that the losing party must pay the litigation costs of the winning party. The amount of these costs is usually determined by the court based on a standard table, which you can find online by searching for “liquidation rate” (“liquidatietarief”). For civil cases, there is a table for proceedings before the subdistrict court (kantonrechter) and a table for proceedings before other courts and the Court of Appeal (for cases on appeal).
If you win a lawsuit, the court may order the losing party to reimburse you for the following litigation costs:
- Court fees (griffierecht): These are the fees you (or your attorney on your behalf) have paid to the court.
- Bailiff fees: Costs you (or your attorney) have paid to a bailiff, for example, to serve a summons or impose a prejudgment attachment.
- Expert or witness fees: If the court has requested one or more experts to provide a report or if witnesses have been heard, the losing party may be required to cover these costs.
- Attorney’s fees: The court determines, based on a table, how much the losing party must pay to the winning party as compensation for attorney’s fees.
The costs under points 1–3 are usually fully passed on to the losing party, whereas attorney’s fees are determined using a fixed table and not based on the actual invoices that the attorney has sent to their client.
Why not full reimbursement of attorney’s fees?
If full reimbursement were required, people with limited financial means might be discouraged from filing a lawsuit against wealthy individuals or large corporations, even if they have a strong case. Suppose you have a case with a 95% chance of winning. If you still lose and are forced to pay the actual attorney’s fees of the opposing party—who may have hired an expensive or multiple attorneys—this could be so discouraging that you decide not to pursue legal action at all.
Exceptions: Intellectual Property Rights and Family Matters
There is an exception to the limited reimbursement of attorney’s fees. In cases involving intellectual property rights (such as copyright, trademark, or trade name disputes), the losing party may be required to reimburse the full attorney’s fees of the winning party. However, even in these cases, the court applies a “reasonableness test.”
Another exception applies to family-related cases, such as disputes between (former) partners or relatives, or when no clear winner can be determined. In such situations, the court may decide that neither party has to reimburse the other’s costs.
Risk of Non-Payment
Even if the court orders the losing party to pay the litigation costs, this does not guarantee that the payment will actually be made. If the losing party is unable to pay, you may still end up with unpaid legal expenses.
Conclusion
It is important to understand that attorney’s fee reimbursement is often limited and typically does not cover actual costs. Would you like to know more about how this applies to your specific situation? Are you curious about your chances of winning a lawsuit and minimizing your costs? Feel free to contact us for personalized advice so that we can explore the best strategy for your case together.
