Funding and Costs of Litigation
Litigation can be a complex and time consuming process. It is therefore important to consider the costs of litigation and how to fund these at the very outset, particularly as it may be difficult to get out of the process once proceedings have been commenced.
We will give you an overview of the likely overall costs of litigation before proceedings are started and provide estimates of costs at every stage. However, estimates are never intended to be fixed, unless we expressly agree fixed costs with you, and due to the unpredictable nature of litigation a degree of flexibility is always required.
Whilst as a general rule you can expect to recover a proportion of your legal costs if you successfully bring or defend a claim, you will usually only make this recovery at the end of the litigation process and as such you need to consider how you fund your case as it progresses. This general rule means of course also that if you are unsuccessful, you will be required to make a significant contribution towards your opponent’s costs, in addition to your own costs. Legal costs of litigation consist of solicitors' fees, disbursements (such as barristers’ fees, court fees, fees of expert witnesses, travel expenses and photocopying costs), and fees related to mediation and arbitration.
Finally, before deciding to embark on litigation, you should consider your own costs of litigation by reference to time spent by you (or your employees) in dealing with our requests for information, time spent on the phone and in meetings with us, barristers and expert witnesses (as appropriate) and attending any court hearings. In addition, the emotional cost that some litigation brings should not be underestimated.
Legal Expenses Insurance
You may already have legal expenses insurance as part of your household or car insurance policy. You will need to check your policy documents to establish if you have such cover.
After the Event Insurance
If you don’t already have cover, then it may be possible to take out after the event insurance. We will be able to advise you on the variety of policies available.
Conditional Fee Agreements
A Conditional Fee Agreement (“CFA”) is an agreement between you and us setting out the funding terms of your claim or defence. Under a CFA we will share the risk of litigation with you and as such will ask to be rewarded in return for doing so, if your case is successful, by reference to a success fee.
If none of the above options are available, then you will be asked for pay for our fees and disbursements out of your own funds and we will invoice you at the end of each month for fees incurred during the course of that month.
We are not able to act for you on the basis of legal aid. If you would like to find out if you can get legal aid for your claim, then we suggest that you visit the following website address: https://www.gov.uk/check-legal-aid
For further information, please contact David Whiting on email@example.com
or call 01295 204105.