The initiation and conduct of litigation in Georgian courts are associated with various procedural costs, including court fees and ancillary expenses. These costs constitute an integral element of access to justice and must be duly considered prior to commencing proceedings. The applicable legal framework establishes the types, calculation methods, and allocation of such costs across different stages of judicial review, including first instance, appellate, and cassation proceedings.
Relevant Laws
The regulation of court fees and litigation-related expenses in Georgia is primarily governed by the Law of Georgia on State Fees and the Civil Procedure Code of Georgia. The Law on State Fees establishes the general principles and rates applicable to payments made to the state budget, including fees associated with court proceedings.
The Civil Procedure Code further elaborates on procedural costs in civil and administrative cases, including the calculation, allocation, and reimbursement of such costs. In administrative proceedings, the Administrative Procedure Code of Georgia provides for specific exemptions from state fees in certain categories of disputes.
Structure of Litigation Costs
Under Georgian procedural law, litigation costs are divided into court costs and out-of-court expenses.
Court costs include: (i) state fees payable for filing claims, applications, and appeals; (ii) expenses related to the consideration of the case, including payments to witnesses, experts, specialists, and interpreters; (iii) costs associated with procedural actions, such as on-site inspections, forensic examinations, and the establishment of factual circumstances; (iv) expenses related to the enforcement of court decisions and, where applicable, costs covered by the state treasury.
Out-of-court expenses include: (i) attorney fees; (ii) costs incurred in securing evidence; (iii) lost income or other necessary expenses incurred by the parties in connection with the proceedings.
State Fees and Their Calculation
State fees constitute the principal component of court costs and are generally calculated based on the value of the subject matter of the dispute. In civil proceedings, the applicable rates are as follows:
- First instance: 3% of the claim value, but not less than 100 GEL;
- Appellate instance: 4% of the claim value, but not less than 150 GEL;
- Cassation instance: 5% of the claim value, but not less than 300 GEL.
The legislation also establishes maximum thresholds for state fees:
- First instance: up to 3,000 GEL for natural persons and 5,000 GEL for legal entities;
- Appellate instance: up to 5,000 GEL for natural persons and 7,000 GEL for legal entities;
- Cassation instance: up to 6,000 GEL for natural persons and 8,000 GEL for legal entities.
In certain cases, fixed fees apply regardless of the claim value, such as for interlocutory appeals, applications for securing a claim, or uncontested proceedings.
In administrative disputes, particularly those involving the annulment of administrative acts, the state fee is typically fixed at 100 GEL in the first instance, 150 GEL in the appellate instance, and 300 GEL in the cassation instance, subject to statutory exemptions.
Determination of the Value of the Dispute
The value of the subject matter of the dispute is generally determined by the claimant and serves as the basis for calculating the applicable state fee. Where the declared value does not correspond to the actual market value, the court is authorized to determine the value independently.
In cases involving multiple claims, the total value is calculated by aggregating individual claims. The relevant valuation is based on market conditions at the time of filing the claim or appeal. Where the value cannot be precisely determined at the outset, the court may provisionally assess the fee, subject to subsequent adjustment.
In certain categories of property-related disputes where valuation is not feasible, the law provides for a fixed notional value for the purpose of fee calculation.
Exemptions and Reductions
Georgian legislation establishes several categories of exemptions from the payment of state fees. These typically include: (i) claims for alimony; (ii) claims for compensation for personal injury or death of a breadwinner; (iii) claims related to damages caused by criminal acts; (iv) claims involving the protection of minors’ rights.
Additionally, individuals registered as socially vulnerable may be exempt from payment upon submission of appropriate documentation.
Beyond statutory exemptions, courts are authorized to:
- Fully or partially exempt a party from payment of court costs based on financial hardship;
- Postpone payment of fees;
- Reduce the amount payable.
Such measures are granted upon substantiation of the party’s financial inability to bear the costs.
Allocation and Reimbursement of Costs
The allocation of litigation costs is generally determined by the outcome of the case. As a rule, the losing party is required to reimburse the prevailing party for reasonable expenses incurred, including court fees and, within statutory limits, attorney fees.
Where a claim is partially upheld, costs are apportioned proportionally between the parties. The court also determines the allocation of costs payable to the state budget, including cases where one or both parties were exempt from payment.
The reimbursement of attorney fees is subject to statutory caps and requires a specific request by the interested party. The court does not award such reimbursement ex officio.
Impact of Procedural Outcomes on Fees
The amount of state fees payable may be affected by procedural developments. In particular:
- Full exemption may apply where proceedings are terminated prior to the main hearing due to withdrawal of the claim, acknowledgment of the claim, or settlement.
- A reduction (typically by half) may apply where such outcomes occur at a later stage, including during the main hearing or mediation process.
These provisions aim to encourage efficient dispute resolution and settlement.
The legal framework governing litigation costs in Georgia establishes a structured and detailed system for the calculation, allocation, and reimbursement of court-related expenses. State fees, primarily determined by the value of the dispute and the stage of proceedings, represent a central component of these costs. At the same time, the legislation provides for various exemptions and mitigating mechanisms to ensure access to justice. Accordingly, a comprehensive assessment of potential costs and applicable legal provisions is essential prior to initiating court proceedings.