In places where "loser" pays (such as the UK), rates are capped at fairly low hourly levels and hours are also capped (or at least there is a known "reasonable" number of hours for a particular type of case).
Note also that the "loser" factors in offers to settle. So if I offer you $10,000 to settle and you refuse and the court awards only $5,000 to you, you are the one that has to pay my legal bill, even though I am the one that "lost".
If one party wins, they do not have to pay the legal fees of the looser.
Settlement offers have no bearing on this.
If one party wins, their (reasonable) legal fees usually are paid by the loosing party. Except if the judge orders both sides to pay their own.
If you offer £10k settlement, and I refuse, and I win £5k, you’d have to give me £5k, plus pay my and your legal fees. What I don’t get to say is you offered £10k so I want that instead.
Note also that the "loser" factors in offers to settle. So if I offer you $10,000 to settle and you refuse and the court awards only $5,000 to you, you are the one that has to pay my legal bill, even though I am the one that "lost".