It depends. This was an employment tribunal, and it will typically decide that both parties should pay their own costs, however the tribunal is entitled to conclude that one of the parties was sufficiently wrong that there shouldn't have been a tribunal, and so they should pay everybody's costs.

This creates an incentive to settle rather than waste the tribunal's time when you're fucked.

The nastiest thing I've seen is Putin, via a surrogate, files a case, court accepts despite the Russian origin, the case is bullshit and they'll lose, but when the court says "This case was a waste of our time, losers pay for everything" the surrogate's lawyers go oh, sorry, that Russian surrogate has vanished, conveniently just after paying our high fees.

I think reform to ensure that either the surrogate must pay for insurance or that the state of Russia is on the hook not an amazing vanishing surrogate is needed. Or we could just penalize the hired guns, bankrupt a few millionaire law partners ?