Costs, settlement and funding

Costs

What are the rules regarding attorneys’ fees and costs on appeal?

Under the ‘American rule’, each party bears its own attorneys’ fees, including on appeal, unless a statute or agreement provides otherwise. Costs on appeal are generally taxed against the losing party.

Settlement of first instance judgment after appeal lodged

Can parties enter into a settlement agreement to vacate the trial court judgment after an appeal has been taken?

The Supreme Court has held that, because the public has an interest in judgments, they may not automatically be vacated as part of a settlement agreement. However, in exceptional circumstances, vacatur may be appropriate.

Limits on settlement after commencement of appeal

Are there any limits on settlement once an appeal has been taken?

No.

Third-party funding

May third parties fund appeals?

Yes. However, this issue is evolving in the United States and is subject to considerable debate among academics, policymakers and litigants. There are very few court decisions addressing the use of litigation funding in general, and virtually none specifically involving appeals.

Disclosure of litigation funding

If litigation funding is permitted in an appeal, must funding sources be disclosed to the court or other parties to the litigation?

Funding sources do not typically need to be disclosed on appeal; however, this is very much an evolving area of law in the United States.

Law stated date

Correct on

Give the date on which the above content is accurate.

31 March 2022.