Costs. Loser pays legal costs

as a court rarely orders all your costs to be repaid. This is because the parties are encouraged to reach an agreement over costs and if this is not possible then the successful party must seek an assessment over his costs. This means that the costs you have incurred are sent to a costs draughtsman who prepares a bill. This bill is then sent over to the other side and a deal is usually reached. I say usually as if the parties cannot agree then the bill is sent over to the court to assess and costs are then awarded. Its expensive and time consuming so its usually wise to agree a deal.

As a general rule the loser pays 65-70% of your legal costs. Its a general rule and one in which there are no hard and fast rules but I was always taught from day one that litigation often only pleases one party only and that is the Lawyers!

The type of costs one would expect in relation to issuing a claim would be based on the following namely 1) accepting your instructions 2) drafting the claim form 3) drafting the particulars of claim 4) preparing all appendices relating to the claim 5) supplying you with the a proposed set of papers for your consideration 6) finalising and incorporating your comments 7) correspondence with the court (8) issuing papers into court (9) serving the papers on the other side formally (the method to be determined) 10) drafting and sending the certificate of service to the court such costs are likely to be in the region of £5,000 and £8,000 plus VAT. This type of quote does not include court fees which are likely to be in the region of £500-£1000 (no VAT) for commencing the claim.

For these reasons I always advise the clients to discuss jaw jaw as opposed to war war – better to talk and get out if you are on a sticky wicket!


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