How litigation costs are allocated between the parties

In Bulgarian civil proceedings, liability for costs depends on the outcome. Under Article 78(1) of the Code of Civil Procedure, a successful claimant is entitled to costs. Under Article 78(3) and (4), the defendant is entitled to costs if the claim is dismissed or the proceedings are discontinued. Whether the defendant’s conduct gave the claimant cause to bring proceedings depends on the facts of the particular case. In allocating costs, the court considers why the claim was dismissed or the proceedings discontinued.

Article 78(2) creates an exception to Article 78(1): even if the claim succeeds, the claimant bears the costs if the defendant gave no cause for bringing the proceedings and admits the claim. Conversely, on the reasoning drawn here from Article 78(2), where the claim is dismissed but the defendant’s conduct gave cause for initiating the dispute, the defendant bears the costs.

Liability for costs thus depends on both the outcome of the claim and the defendant’s conduct, as discussed in Article 78(1), (2), (3) and (4). Although the outcome ordinarily determines costs, liability also rests on the requirement in Article 3 of the Code that procedural rights be exercised in good faith.

This article does not provide a legal opinion or advice about any particular person or situation. For legal assistance in an individual case, consult a lawyer.