Civil Litigation For Businesses

What Are the Main Components of Litigation Costs?

The costs of litigation can vary based on the complexity of the case and the amount of disclosure involved, but they generally include:

• Solicitor and Barrister fees
• Court fees
• Expert opinions and reports
• Other disbursements (costs that do not include any profit for the solicitor or party)
• Costs associated with seeking permission to apply for Judicial Review

Appealing a decision can further increase litigation costs; however, costs at the Court of Appeal tend to be lower than at the High Court, as much of the work has already been completed. If permission to appeal is not granted by the High Court and must be sought, appeal costs can escalate.

What Is a Part 36 Offer?

Part 36 Offers refer to settlement offers made under Part 36 of the Civil Procedure Rules (CPR). Lord Justice Moore-Bick described Part 36 Offers in Gibbon v Manchester City Council [2010] EWCA Civ 726, [2011] 2 All ER 258 as:

“to encourage settlement and to enable those who make sensible offers to protect themselves against liability for the costs incurred in the continuation of proceedings to no ultimate advantage.”

Part 36 Offers can be made at any time during the claim proceedings, including throughout the trial. They are usually related to monetary claims but can be used in other scenarios, such as declaratory actions.

Part 36 Offers must specify a ‘relevant period’ during which they can be accepted. This period must be at least 21 days. If the offer is accepted within the relevant period, the Claimant can recover most costs (legal fees and case-related expenses, such as expert fees) up until the acceptance date. If the offer is accepted after the relevant period has expired, the Court can decide on liability for costs if the parties cannot reach an agreement themselves.

Will My Dispute Go to Court?

It is unlikely, as most civil litigation cases are resolved outside of Court. Although we are prepared to litigate if necessary, this is never our first approach. We begin by listening to understand the nature of your dispute and strive to resolve it through Alternative Dispute Resolution methods such as negotiation, mediation, adjudication (for construction disputes), or arbitration.

Our Civil Litigation Solicitors do not rely on standard solutions; our approach is always value-based. We continuously weigh the value of the potential result against the costs of achieving it and advise you on whether pursuing a particular course of action is in your best interests.

What Is Litigation Funding?

Litigation funding involves a third party, with no connection to the litigation, agreeing to finance all or part of the case in return for a share of the proceeds if the funded party is successful.

The benefits of litigation funding include:

• Sharing the risks associated with litigation
• Allowing companies with limited legal budgets to fund multiple claims simultaneously
• Removing the cost of litigation from the company balance sheet and minimising the impact on cash flow
• Providing operating capital through facilities using the contingent proceeds of litigation as security

Previously, litigation funders would only finance multi-million-pound cases. This is no longer the case; most funders now seek a mix of larger and smaller claims to spread the risk and avoid losing their entire investment in a single case.