Paying for litigation cases

by | Feb 20, 2018 | Blog, Blog Posts

Litigation can often be an expensive and lengthy process. People are often not aware that paying for litigation costs out of your own pocket is not your only option.

A fundamental principle to be aware of in litigation is that ‘the loser pays the winners costs’. This means that should you be successful in the case then you may be able to recover some of your legal costs from the other side. Accordingly, should you be unsuccessful you may end up paying for your own costs as well as a proportion of your opponent’s. Please note that even when you are successful in a case, the court will decide whether to award you your costs. Even if the court awards you your costs, you are likely to only recover a proportion of them.

This article will look at different ways to consider paying for litigation.

Paying yourself

The costs associated with litigation include paying solicitors’ fees and expenses. Expenses (also referred to as disbursements) can include obtaining expert reports, advice/opinions from barristers and court fees.

The team will provide you with costs estimates from the outset of your case. We make a conscious effort to continually monitor the costs of the case and will update you on a regular basis. We will invoice you at intervals, rather than one large bill at the conclusion of your case.

In some cases, we may be in a position to offer you a fixed fee to cover some or all of the work.

No win, No fee

‘No win, no fee’ agreements are also known as Conditional Fee Agreements (CFAs). You will only pay for your legal costs if you win your case. If you are unsuccessful, your solicitor will not charge you their costs. Levi Solicitors does not undertake work on a CFA basis.

Legal Expenses Cover (LEI) / Before the Event Insurance

Home insurance policies and credit cards sometimes offer Legal Expenses Insurance (LEI) as standard or as an add-on.

If you have LEI, it will typically cover any legal proceedings relating to your home, employment, death or personal injury amongst other actions. Your insurer will pay for your legal costs. Some insurers will request that you use one of their approved solicitors. It is important to note, however, that you are entitled to request to use solicitors you have chosen.

For a small additional annual fee, this type of funding can be particularly valuable.

After the Event Insurance (ATE)

Claimants predominantly use this type of insurance, but it is open to defendants in certain cases. If you lose your case it covers your opponent’s legal expenses and any of your own disbursements. ATE policies are usually entered into when proceedings have been issued.

If your claim is successful, you will pay the insurance premium from any compensation/award. It is not recoverable from your opponent.

People usually seek ATE if they do not have LEI. It can be used alongside paying privately or a Conditional Fee Agreement.

Legal aid

In certain circumstances, you may be able to claim legal aid for civil disputes. Here is a list of matters for which you may be able to receive legal aid.

Please note that Levi Solicitors does not undertake work on a legal aid basis.

The dispute resolution team at Levi Solicitors LLP will always advise you on your options for paying for litigation cases. If you would like to discuss paying for litigation cases in further detail, please contact us on 0800 988 7756.

paying for litigation

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