The usual costs which must be paid for in commercial litigation include your own legal fees and expenses (ie barristers' fees, court fees, expert witnesses' fees, fees for any other dispute resolution process such as mediation, photocopying and travel expenses) and, if you lose, your opponent's legal fees and expenses will normally also be payable.
Insurance known as 'after-the-event insurance' is provided by specialist insurers to cover litigants against the exposure to the costs of an opponent should they lose.
Under the Advantage product, this insurance cover will be available in conjunction with the conditional fee agreement you enter into with us which will cover up to 100% of your own legal fees. By combining both elements, your overall legal costs and your exposure to an adverse costs order are significantly reduced.
As a result of our expertise in dispute resolution and our reputation in the market, we are authorised under a delegated authority arrangement by a leading legal expenses insurer to cover your potential exposure to your opponent's costs and your own legal expenses. This sets us apart from other commercial litigation firms.
The insurance will cover up to £2m of your opponent's legal costs if you lose and up to £50,000 of your own legal expenses such as barrister's fees.
The payment of the premium is deferred until the conclusion of the claim. If you win, the premium will be recoverable as part of a costs order against your opponent if it is deemed reasonable by the court. If you lose, the premium is not payable as the insurer bears the cost of the premium as part of the insured liabilities.
If you win and the court decides that the premium is not reasonable or proportionate in the circumstances, it can order that none of it or only a proportion is recoverable. You will be responsible for any shortfall in the amount of the premium which can be recovered. By using a specialist and experienced insurer, we will minimise the risk of a shortfall as far as possible.
The premium payable for after the event insurance depends on the amount of cover required and the strength of your case as determined in the early risk assessment.
The result of taking out this cover is that a significant part of the financial exposure you would otherwise have to your opponent's costs is shifted from you and the risk put on the insurer if you lose. If your overall risks and costs exposure are reduced, your position in commercial litigation or dispute resolution is strengthened.
We will then report to you on your prospects of success and provide you with a commercial and incisive legal opinion. The report will include an estimate of your potential legal costs and the level of adverse costs you will be exposed to in the litigation.
Where we are able to act for you under Advantage, we will advise you in detail on how the funding arrangement will work in your particular circumstances as the precise details may vary from client to client.
There is a fixed fee cost at the outset for the early risk assessment exercise. The fee will vary depending on the nature and circumstances of the dispute and we will advise you what the fee will be before the risk assessment is carried out. We will not exceed this fee.
If we think your prospects are not sufficiently robust, the risks are too high or the cost / benefit analysis is not in your favour, we will tell you without you incurring any more legal costs. Where it is concluded that your position is not strong enough to be funded under Advantage, or your opponent doesn't have the means to pay if you were successful, we can of course help you to try and negotiate a swift resolution to the dispute.
To speak with a solicitor in the Dispute Resolution team click here or call us on 0800 840 4929.
