málskostnaðarrétti

Málskostnaðarrétti is an Icelandic legal term that translates to "legal costs" or "litigation costs." It refers to the expenses incurred by parties involved in legal proceedings, such as court fees, attorney fees, and expert witness fees. In Iceland, the general principle is that the losing party in a lawsuit is responsible for paying the legal costs of the winning party. This principle aims to deter frivolous litigation and ensure that the successful party is compensated for their expenses. However, there are exceptions and nuances to this rule. Courts have discretion to deviate from the general principle based on various factors, including the conduct of the parties, the complexity of the case, and the overall fairness of the outcome. Parties may also agree on how legal costs will be allocated, especially in settlement agreements. The assessment of legal costs can sometimes be a separate process following the main judgment, where the court reviews and quantifies the expenses claimed by the winning party. Understanding málskostnaðarrétti is crucial for anyone involved in legal disputes in Iceland, as it can significantly impact the financial implications of litigation.