PART I GENERAL PRINCIPLES
CHAPTER III VALUE OF CLAIM & LITIGATION EXPENSES
Section 3 Bearing of Litigation Expenses
The losing party shall bear the litigation expenses.
In cases of a partial victory or a partial defeat, the court may, in its discretion, order the litigation expenses to be borne by both parties in a certain proportion; or by a particular party alone, or order both parties separately to bear the litigation expenses they incurred respectively.
When a defendant had forthwith admitted to a claim presented by a plaintiff and established that the litigation action was unnecessary, the plaintiff shall bear the litigation expenses.
In matters arising from a partition or demarcation of a thing held indivisibly or other matters of similar nature, where it is manifestly unfair for the defeated party to bear solely the litigation expenses, the court may, in its discretion, order the prevailing party to bear part of the litigation expenses.
The court may, in its discretion, order the prevailing party to bear the litigation expenses incurred in full or in part for the following:
1.An act performed by the prevailing party which is unnecessary for asserting or defending its rights;
2.An act performed by the defeated party which is necessary for asserting or defending its rights in accordance with the phase of the proceedings reached at the time.
Where a party has failed timely to present means of attack or defense, or to meet a specified date or period, or otherwise delayed the proceeding by reason of whatever cause imputable to such party, the court may order such party to bear the litigation expenses incurred from the delay, in full or in part, irrespective of his/her victory.
In cases of voluntary dismissal, the plaintiff shall bear the litigation expenses.When the plaintiff voluntarily dismisses the action prior to the conclusion of the oral-argument session in the first instance, he/she may, within three months after such dismissal, move for the return of two-thirds of the court costspaid for that instance.
The provision of the preceding paragraph shall apply mutatis mutandis to cases of voluntary dismissal of an appeal from a judgment or an appeal from a ruling.
In cases of a settlement, the parties shall respectively bear the expenses of the settlement and the litigation expenses, except as otherwise may be agreed upon.
When a settlement is reached, the parties may, within three months after the settlement date, move for the return of two-thirds of the court costs paid for the current court action.
Co-parties shall bear the litigation expenses in equal proportion. Notwithstanding, where there is a manifest difference in the co-parties?gains and losses from the action, the court may, taking such difference into consideration, order the litigation expenses to be borne proportionately to the gains and losses.
When the co-parties lose an action over a joint or indivisible debt, they shall bear the litigation expenses jointly and severally.
When one of the co-parties conducts acts of litigation solely for his/her own interests, the expenses incurred thereby shall be borne by such party.
An intervener shall bear the expenses incurred for the intervention. Notwithstanding, the opposing party shall still bear the litigation expenses imposed in accordance with the provisions of Articles 78 to 84 inclusive.
The provision of the preceding article shall apply mutatis mutandis to the case where the claim of the action must be adjudicated jointly with regard to the intervener and the supported party.
Upon entering a final judgment, the court shall, on its own initiative, decide the responsibility for litigation expenses.
Where a superior court has reversed a lower court's judgment and entered a decision or changed the lower court's judgment, such superior court shall decide the responsibility for total litigation expenses. The same principle shall apply to cases where the lower court to which a case has been remanded or transferred is to enter a final judgment on that case.
A decision on the responsibility for litigation expenses is not reviewable in the absence of an appeal from the principal decision in issue.
In cases of meritless litigation expenses incurred by the court clerk, the executive officer, the statutory agent, or the advocate, intentionally or through gross negligence, the court may by a ruling on a motion or its own initiative, order such court officer, statutory agent or advocate to bear the litigation expenses incurred.
Where the party who was permitted to conduct acts of litigation pro tempore in accordance with the provisions of Article 49 or the first paragraph of Article 75 failed to correct the remediable defect, the court may rule by an order on its own initiative that such party will bear the litigation expenses incurred by his/her acts of litigation.
An interlocutory appeal may be taken from a ruling made in accordance with the provision of either of the two preceding paragraphs.
Where an action is concluded without a decision, the court shall by ruling on a motion decide on the responsibility for litigation expenses.
The motion provided in the preceding paragraph must be filed within a peremptory period of twenty days following the conclusion of the action.
Where the amount of litigation expenses is not fixed by the decision on the responsibility for litigation expenses, the court of first instance shall, on motion, fix the amount by a ruling after that decision becomes enforceable.
A motion for fixing the amount of litigation expenses shall be filed with a statement of fees, a written copy or photocopy copy of such statement to be served upon the opposing party, and explanatory evidence of the stated fees.
The amount of litigation expenses payable based on the amount fixed in accordance with the provision of the first paragraph shall be the amount fixed plus interest accrued at the statutory interest rate from the day following the service of the ruling.
Where litigation expenses are to be borne by both parties proportionately, the court shall order the opposing party to present a statement of fees, a written copy or photocopy copy of such statement to be served upon the movant, and explanatory evidence of the stated fees within a designated period of time before entering the decision.
When the opposing party has failed to observe the designated period of time provided in the preceding paragraph, the court solely may decide the stated fees presented by the movant. Notwithstanding, the opposing party may move the court to fix the payable amount of litigation expenses at a later date.
Where the litigation expenses are to be borne by both parties in a certain proportion, except in the case provided in the second paragraph of the preceding article, the court, when fixing the amount of litigation expenses payable by each party, shall adjudicate the amount of the balance payable by one party to the other party as a result of an offset.
The court may order the court clerk to compute litigation expenses.
The presiding judge may order a party to advance within a designated period of time the fees necessary for conducting an act of litigation. When the party fails to advance the fees, the court may elect not to conduct such act. Notwithstanding, absent such advance payment of fees, where the proceedings will be prevented from continuing and the opposing party has refused to disburse such fees after being notified to do so within a designated period of time, the proceeding shall be deemed stayed by consent.
In cases covered by the proviso of the preceding paragraph, the proceedings shall resume within four months of receipt of the advance payment or disbursement of the fees from the party. If neither party advances or disburses the fees by the expiration of the said four months, the action or appeal shall be deemed dismissed voluntarily.
Provisions of this Section 3 shall apply mutatis mutandis to cases where the court rules that the action or issues are not relevant to the action.
Where a prosecutor is a party and bears litigation expenses in accordance with the provisions of this Section, such litigation expenses shall be disbursed by the national treasury.