Usually the losing side pays part of the winning side’s legal costs. This is called a costs order. It is not automatic — the judge has a discretion, and the outcome depends on the court, the result, and how each party behaved during the case. You will almost never recover everything you paid your own lawyers.

No. “Costs follow the event” is the starting point, not a rule. A judge can order something different if you won on only some issues, rejected a reasonable settlement offer, ran the case unreasonably, or missed court deadlines. The court can also order each side to bear its own costs.

Yes, often substantially. The most expensive parts of litigation are preparing evidence and running the hearing. Mediating before that work is done can end the dispute outright, or narrow the issues so the hearing is shorter and cheaper for everyone.

Usually not. On a standard costs order (the “ordinary” or “party and party” basis) you typically recover well under what you actually paid — often somewhere between half and two thirds. Fuller recovery only comes with an indemnity costs order, which is exceptional.

In one of three ways: the parties agree a figure; the costs are calculated under a court scale; or a costs assessor reviews the bill and decides what was reasonably incurred and reasonable in amount. Which applies depends on the court and the wording of the costs order. Assessment itself takes time and money.

It depends on how much you are claiming and what remedy you want. In NSW the Local Court hears claims up to $100,000 (its Small Claims Division deals with claims up to $20,000), the District Court hears claims up to $1.25 million, and the Supreme Court has no monetary limit. Some claims must go to a specific court or tribunal under legislation.

Party and party (ordinary basis) costs cover what was necessary to run the case, and recovery is partial. Indemnity costs cover everything reasonably incurred and give the winner a much higher recovery. Courts order indemnity costs in limited situations — for example where a party rejected a reasonable offer or ran a hopeless case.

Whatever the settlement agreement says. Costs are part of the negotiation, and the terms should state clearly whether one side pays the other’s costs, how much, and by when. If the agreement is silent you may need a further court application or a formal costs assessment — an avoidable expense.

In most cases yes, fees are payable when you file. Courts charge separate fees for filing, hearing days and some applications, and corporations pay higher fees than individuals. Waivers, reductions or postponement may be available for concession card holders or where paying would cause financial hardship.

Yes. A properly drafted offer — such as a formal offer of compromise or a Calderbank letter — puts the other side at risk. If they reject it and end up with a result no better than the offer, the court can order them to pay your costs from the date of the offer, often on the indemnity basis.