Article: Commentary: What's the difference between sanction and cost?

For engaging in frivolous conduct, Part 130 of the Rules of Court authorizes two remedies: The court may grant an award of costs or impose sanctions.

What is the difference?

Costs are paid to another party

Costs, as set forth in 22 NYCRR [section]130-1.1(a), are "in the form of reimbursement for actual or expenses reasonably incurred and reasonable attorney's fees."

They are to be paid to an opposing party as payment for engaging in frivolous conduct.

Sanctions paid to Lawyers' Fund

In contrast, sanctions are a financial penalty that go to the State of New York. More precisely, sanctions are deposited with the Lawyers' Fund for Client Protection. [section]130-1.3.

$10,000 max

With ...

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