1. They don't use precedent, judges rule based on legislation alone.
2. Germany criminal and administrative law uses an "inquisitorial" system where the judges perform fact-finding and question witnesses (in contrast to the "adversarial" system used in common law countries)
3. German lawyers have their fees set by the "RVG" (Act on the Remuneration of Lawyers) and even if the winner chose fancy lawyers that charge more than set by the RVG, the loser only pays the amount set by the RVG.
4. Contingency fees were completely banned until recently, and are very rarely used today.
5. There are no punitive damages awarded under the German legal system - only compensatory damages.
Between these factors, German trials cost a lot less - so legal fees don't ruin you financially even if you lose.
In Poland where we have similar rules in place it's just purely theoretical principle. In practice precedent is very important and learning about what other courts ruled ("orzecznictwo") is what lawyers spend their time on. It's as important if not more than the letter of the law in practice.
Source: my ex was a lawyer and we have a number of lawyer friends (judges, attorneys, corporate lawyers).
There are indeed inconsistencies in the decisions of the lower courts, and in some cases (like defamation suits) with no clear geographic reference this can lead to forum shopping.
Edit: An important point that I forgot to make is that in cases where a lower court might deviate from the usual legal practice, it may be required to ask a higher court to decide in the matter precisely to avoid grave inconsistencies. So case law is never completely irrelevant in Germany.
Formalizing into law the system where a judge decides what is a reasonable amount of attorney's fees definitely sounds like an improvement! Though I can see where revamping the fundamental structure of a legal system could be challenging, time-consuming, and probably messy.
Edit: not that I support the legal status quo, I just don't see the public bipartisan will to make that level of systemic reform
Evolved law systems, like common law, do have some elegance that most people tend to overlook. Here's one article I found very interesting:
http://www.law.nyu.edu/sites/default/files/ECM_PRO_060886.pd...
It’s probably just best to leave it to the discretion of the courts to decide whether one side pays the costs of the other. Better than legislating that the loser always pays.
And let's be real, how often do a normal person sue big corps like the ones you mention and actually win ?
Obviously, the discretion of the courts hasn't been consistent nor has it always been fair. Hence, rules.
Source: https://www.nolo.com/legal-encyclopedia/attorney-fees-does-l...
"To further this goal, the losing side doesn’t usually pay the winning side's attorney's fees. In the United States, the rule (called the American Rule) is that each party pays only their own attorneys' fees, regardless of whether they win or lose."
US courts can award costs, and they do in many circumstances. But it is not automatic by any means. Even in countries where costs are awarded automatically, actually collecting on those costs is difficult - I personally know people who have successfully defended themselves and are in exactly this situation in the EU.
Meanwhile I had to pay my lawyer. I would have been better off doing nothing, and in hindsight I would not pursue the case.
> In Germany, all costs associated with a lawsuit have to be paid/reimbursed by the losing party.
with:
> That is already how it works in US civil litigation.
An optional agreement between parties is absolutely not the same as a mandatory, by-default, loser pays system. And yes, in my case getting an agreement like that was certainly going to be impossible.
Also, re: Google and Oracle, the payment was after petitioning the judge - as often happens - and those costs were awarded because the lawsuit was particularly pointless. Yet even then they did not include millions of dollars in discovery costs, so Google got much less than 100% of their legal costs: https://www.tweaktown.com/news/25667/oracle_must_pay_google_... I do not believe you are correct in saying there was any prior agreement.
And of course, nothing at all. And yes, I agree that having only some types of costs awarded and not others can easily be absurd.
The current system is not perfect but if does very clearly incentivize people not to incur legal fees in excess of the actual amount of money being argued about.
The vast vast majority of legal cases are settled through negotiation.
This is a general problem with the US court system. People with more resources can use it to destroy people with fewer resources, because litigation is expensive and time consuming even if you ultimately prevail.
This isn't a problem for the rich because they can survive the loss, and then the incentive to frivolously harass them isn't there when it costs you as much as it does them. It isn't a problem for government officials because of qualified immunity. It's a problem for everybody else.
Maybe we should take the exception away from government officials, to increase their incentive to solve it for everybody else.