Reducing legal costs is important for both individuals and legal firms going through what can already be a difficult and stressful process.
There are regularly high profile cases in the media which draw attention to this issue. Only recently, Prince Harry made the decision to drop a particular case against a newspaper due to the potential legal bill. Hugh Grant also recently settled a claim against a publisher due to the risk of paying £10 million in legal costs.
So, what are key aspects and considerations in the UK compared to other jurisdictions?
England and Wales, the general rule is that the losing party pays the legal costs of the winning party. However, the court has discretion in awarding costs. In certain matters, the losing party may only be required to pay a portion of the winning party’s legal costs. Alternatively, costs may be divided based on a wide variety of factors.
Legal fees in the UK can vary widely depending on the complexity of the case.
The experience brought to the case by the solicitor or barrister can make all the difference. Contingency fees (where the lawyer’s fee is contingent upon winning the case) are illegal in the UK, except in very limited circumstances (to DBA agreements).
In some jurisdictions, contingency fees are more common; these allow clients to pay their lawyers a percentage of the amount recovered in a successful case.
Cost management is a critical part of what we do.
In England and Wales, costs management procedures are in place to control and budget costs at the outset of the litigation. Parties are required to submit costs budgets, and any deviations from these budgets will require court approval.
Our experienced Costs Lawyers and Law Costdraftmen based in central London can make this process much easier and ensure that nothing is overlooked. We regularly prepare estimates/forecasts for funding, internal solicitor-and-own-client billing/estimates, and on an inter partes basis.
Knapp Richardson can provide comprehensive and practical advice based on our extensive knowledge and experience, to include preparation of detailed forecast schedules. This can illustrate all future costs parameters when considering funding and/or costs management.
When dealing with inter partes costs, our Costs Lawyers are able to prepare and advise upon all aspects of Costs Management, including:
- Precedent H Budgets
- Precedent R Budget Discussion Reports
- Precedent T budget variation applications.
We advise upon the scope of the assumptions to be relied upon and collate information from all relevant sources (counsel, experts and other professionals) as well as utilisinge our own internal database of this information. We can also provide budget monitoring services to evaluate your expenditure against your budget so that our clients can act quickly to update and revise a budget, following significant developments in the litigation. We also regularly prepare comparable analyses; briefing notes for counsel’s use at the CMC and; can attend at CMCs on your behalf.
Knapp Richardson covers various jurisdictions in and outside the UK.
Procedures for managing costs may differ significantly. Some jurisdictions may not have formal costs management procedures, while others may have similar mechanisms in place.
Get help with Alternative Dispute Resolution (ADR).
ADR methods such as mediation and arbitration are also commonly used in the UK as alternatives to litigation, which is a process encouraged by the court in order to reduce costs.
ADR practices and their integration into the legal system may vary. Some jurisdictions may have a stronger emphasis on ADR, while others may rely more heavily on traditional litigation.
What about taxation of costs Detailed Assessment?
Costs awarded by the court may be subject to taxation, where the costs are assessed and approved by a costs judge.
Our services include negotiations and advocacy at any detailed assessment, with our team having a wealth of experience in this area.
Our Costs Lawyers and Costs draftsmen have a wealth of experience and regularly appear before the High Court, Senior Court Costs Office and the National Courts (both the Crown and County Court) in respect of both civil and criminal proceedings.
They cover everything from small interlocutory applications (summary assessment/security for costs/interim payment/re-determinations before taxing officers) through to complex and lengthy detailed assessments.
These are just some broad points to consider when comparing costs law in the UK with other jurisdictions. It’s important to note that each legal system has its own unique characteristics and nuances that can significantly impact the costs involved in litigation.
Established in 1984, Knapp Richarson is located in the heart of London, in close proximity to the High Court/Senior Court Costs Office. We have an unrivalled reputation for excellence and a long-established client base, including numerous top City Law Firms.
Find out more about our experienced Costs Lawyers in London. Or don’t hesitate to contact our friendly team for more information.
