In that third-party case, what is the costs amount?

In that third-party case, what is the costs amount?

• A. $4,000
• B. $36,000
• C. $40,000
• D. $6,000

Answer: (A)

In a third-party case, costs are the actual out-of-pocket expenses incurred to pursue or defend the case and prepare for trial, not the damages or settlement. These costs come from an itemized costs bill and include filing fees, service of process, deposition and court reporter fees, expert fees, and other court costs. The figure shown as four thousand dollars aligns with what a costs bill typically looks like—an amount smaller than the total damages or settlement. The other numbers would usually reflect the damages awarded or the total settlement, not the costs bill, so they don’t fit as the costs amount.

In a third-party case, costs are the actual out-of-pocket expenses incurred to pursue or defend the case and prepare for trial, not the damages or settlement. These costs come from an itemized costs bill and include filing fees, service of process, deposition and court reporter fees, expert fees, and other court costs. The figure shown as four thousand dollars aligns with what a costs bill typically looks like—an amount smaller than the total damages or settlement. The other numbers would usually reflect the damages awarded or the total settlement, not the costs bill, so they don’t fit as the costs amount.