Should we agree to arbitration after a dispute has already started?
- 05.09.2026
I am thinking of bringing a claim in the High Court but the legal costs frighten me. If I win, will the other side have to pay all my legal fees? I have heard the winner rarely gets back everything. I want to make sure I am not missing anything important before I decide what to do.
In New Zealand, costs generally follow the event, meaning the successful party is usually entitled to a contribution towards its costs, but not the whole amount. Under the High Court Rules 2016, costs are calculated on a scale according to the complexity of the case, the time reasonably needed for each step and a daily recovery rate, and this typically recovers around two thirds of the actual reasonable costs at best, sometimes less. Indemnity costs are awarded only in exceptional cases such as an unreasonable conduct or where a contract provides for them. If you lose, you are likely to be ordered to pay the other side's costs in addition to your own. Ask your lawyer for an estimate of costs and risks before you commit.
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