Court fee

What it means

A court fee is a payment due from anyone filing an application with a court, such as a claim for payment, an application for a payment order, an appeal or an application for an entry in the commercial register. The amount is set by the Court Fees Act and its schedule.

For monetary claims the fee is usually a percentage of the amount claimed, with a set minimum and maximum. For other acts it is a fixed amount. Filing electronically is usually cheaper than on paper, a rule introduced to encourage electronic communication with courts.

The fee is generally paid when the application is filed. If the applicant does not pay it even after the court’s request, the court discontinues the proceedings. A successful claimant can, however, include the fee in the legal costs that the losing party must reimburse.

How it works in practice

In debt recovery we work out with the client whether court action is worthwhile: the fee, lawyers’ costs, the length of proceedings and the likelihood that the debtor can pay. For small amounts a letter before action and an instalment agreement are often better.

In the books, the court fee is an expense that, if the case succeeds, is usually passed on to the debtor as part of costs. We recognise a claim for costs only once the decision is final and there is a real prospect of the debtor paying.

For debtors in other EU countries we consider a European order for payment, where the fees follow the rules of the court’s country. For clients with frequent disputes we recommend comparing costs with legal expenses insurance.

What to watch out for

A court fee paid in vain is lost. If a claim is filed against the wrong party or after the limitation period, the court dismisses it and the fee is not refunded. Before filing we therefore check the debtor’s exact details and the deadlines.

Winning a case does not mean the money will arrive. The judgment is an enforceable title, but against a debtor with no assets enforcement will yield nothing, and the fee and costs stay with the company. Where the debtor’s assets are in doubt, we weigh litigation especially carefully.