Cost and Fee Allocation in Slovenia – From Major to Partial Shifting?

Abstract

The basic rule of cost and fee allocation is that the losing party must reimburse costs to the winning party. The principal justification for the rule is that the winner deserves to have the costs of successfully pursuing a right or defending against a claim reimbursed. In addition, it is believed that the rule is designed to encourage that meritorious claims are brought to court. Yet, cost and fee allocation rules do not guarantee the winner full compensation for all litigation expenses. For example, in Slovenia, success oriented fees are allowed to a limited extent, but the court’s determination of cost and fee allocation is subject to the calculation method under the statutory tariff, irrespective of the actual agreement between the winning party and the attorney. Although at the present time, the tariff fees cover the winner’s attorney fees in most cases either completely or at least to a very large extent, a further deregulation of attorneys’ fees could dramatically complicate the loser-pays rule and could result in a situation where full reimbursement of the winner is not guaranteed.