What is the impact of litigation on the general cost of counsel's fees?

As Saunders J. outlined in Landymore v. Hardy, 1992 CanLII 2801, [1992] N.S.J. No.79 (NS. S.C.): "Costs are intended to reward success. Their deprivation, will also penalize the unsuccessful litigant. One recognizes the link between the rising cost of litigation and the adequacy of recoverable expenses. Parties who sue one another do so at their peril. Failure carries a cost. There are good reasons for this approach. Doubtful actions may be postponed for a sober second thought. Frivilous actions should be abandoned. Settlement is encouraged. Winning counsel's fees will not be entirely reimbursed, but ordinarily the losing side will be obliged to make a sizeable contribution."