A more thorough explanation:

Definition: The term “prevailing party” refers to the party in a legal case that has achieved a favorable outcome or has prevailed on a significant issue in the litigation and has derived some of the benefits sought by the litigation.

For example, in a case where a plaintiff sues a defendant for damages and the court rules in favor of the plaintiff, the plaintiff is considered the prevailing party. Similarly, if a defendant is sued and the court dismisses the case in their favor, they are also considered the prevailing party.

In some jurisdictions, a party may be considered the prevailing party even if they do not receive a monetary award. For instance, if a plaintiff sues a defendant for breach of contract and the court finds that the defendant did not breach the contract, the defendant may be considered the prevailing party even if they did not receive any monetary award.

Furthermore, in some cases, the prevailing party may be entitled to recover attorney’s fees and other costs associated with the lawsuit. This means that if a party wins a case and is considered the prevailing party, they may be able to recover some of the costs they incurred during the litigation process.