Comment by skissane

It depends on the country.

In the US, you normally don't recover costs even if you win; sometimes you can get an exception, especially if your opponent behaved in a particularly egregious manner.

In most of the rest of the English-speaking world, the normal rule is the loser pays a significant percentage of the winner's costs. I know here in Australia, the default is the loser pays (on average) 50–75% of the winner's costs ("standard costs")–the variation is because the judge sends the case to an auditor who reviews the winner's legal bill against the rule book, and so the exact percentage depends on factors like which tasks the winner's lawyer charged them for, their hourly rate, what the auditor viewed as reasonable given the complexity of the case, etc. Convince the judge the loser behaved egregiously, and then you get indemnity costs, which are closer to 85-100%.

This has pros and cons. For the "little guy", it makes lawsuits much more survivable if you are confident you are going to win; it makes you much more inclined to just fold if you think there is a significant risk you'll lose.