The major ideas behind loser pays fee shifting in German civil litigation are the “net-of cost” principle and the determent of frivolous lawsuits. However, general fee shifting can raise severe problems like sharply reducing access to the courts for parties of moderate means. Based on the findings of the theoretical and empirical literature on the effects of alternative fee shifting systems, this article discusses the pros and cons of German-style fee shifting in the light of the above mentioned goals. It turns out that fee shifting is not at all unanimously preferable over alternative cost allocation regimes. The moderating effects of legal aid and legal expenses insurance are also considered.