What are the costs of civil court proceedings in Germany? Who bears these costs?
Court and lawyers’ fees are regulated by statute. Under these statutes, fees are primarily calculated on the basis of the value of the matter in dispute. However, it is possible and common practice for German lawyers and their clients to enter into negotiated fee arrangements (see Part I, question 1.6 below). As a general rule in German civil litigation, all fees and expenses arising from the lawsuit, including the opponent’s lawyers’ fees (to the extent they do not exceed the statutory fees), have to be borne by the defeated party. If the claimant wins only part of its case, the fees and expenses will be divided between claimant and defendant on a pro rata basis. Each court decision will determine the allocation of fees and expenses among the parties.