DENMARK Law and Practice Contributed by: Thomas Norvold, Søren Locher, Anne Mie Lund and Pawel Weigel, Fabritius Tengnagel & Heine
10.5 Court-Imposed Conditions on Granting an Appeal The court cannot impose any condition on the grant- ing of an appeal. 10.6 Powers of the Appellate Court After an Appeal Hearing Based on an assessment of the appeal, the court will uphold, modify, annul or remand the decision from the court of first instance. The appeal court is bound by the claims made by the parties, and does not have the power to make a judgment outside the scope of the parties’ claims. 11. Costs 11.1 Responsibility for Paying the Costs of Litigation During court proceedings, the parties are responsible for their own costs related to the lawsuit, including costs related to procedural steps such as obtaining answers to questions asked of a court-appointed expert witness. When the court renders a judgment, it will ex officio consider the costs of the case. Lawyer costs are nor- mally not fully reimbursed (the actual costs incurred); instead, the court uses fixed amounts based on guide- lines that mainly focus on the value of the disputed matter (the value of the case). Other expenses, such as court fees, expert witness fees and translation costs, are usually fully refunded, assuming they were incurred by the party that wins the case. The court’s decision on costs can be appealed sepa- rately, without appealing the court’s judgment on the substantive issue of the case. However, this requires the costs to exceed DKK50,000; appeals regarding costs for a smaller amount require permission from the Appeals Permission Board. If a party appeals the court’s decision regarding the substantive issue of the case (the judgment), a claim can be made to change the costs from the previous instance.
11.2 Factors Considered When Awarding Costs The court will consider who, if anyone, can be con- sidered to have won the case, either fully or partially. The losing party – unless otherwise agreed – will be required to pay litigation costs to the winning party. This also applies in the appellate instance. If a party fails to change the court’s decision during an appeal, that party will be considered the losing party in the appeal. If a party offers a sum of money as a settlement, and the other party does not receive a judgment that is higher than the offered settlement during the court proceeding, the winning party may forfeit its right to be awarded litigation costs (from the moment the oth- er party made the offer). If a case is only partially won, partial litigation costs may be awarded. The court may also determine that each party bears their own costs, depending on the outcome of the case. Costs deemed excessive cannot be reimbursed. 11.3 Interest Awarded on Costs According to the Danish Interest Act, interest accrues on litigation costs from the due date. Litigation costs are due for payment 14 days after the judgment is rendered (corresponding to the enforcement deadline of the decision). See also 9.3 Pre-judgment and Post- judgment Interest and 9.5 Enforcement of a Judg- ment from a Foreign Country in this regard. 12. Alternative Dispute Resolution (ADR) 12.1 Views of ADR Within the Country There is a positive view on ADR in Denmark, and par- ties are encouraged to seek a resolution to their dis- pute outside of court proceedings when involved in a court case. When a lawsuit is initiated, the parties are actively encouraged to consider whether they wish to engage in mediation facilitated by a court-appointed mediator. Such mediation can take place concurrently with the preparation of the court case. Mediation is facilitated by a judge or a lawyer appointed by the court, who has undergone special training. This form of mediation is free of charge.
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