Litigation costs
Navigating litigation costs is essential for informed decision-making. This guide by our team of litigation solicitors provides clarity on potential expenses, offering insights to prepare for legal proceedings effectively.
The costs you incur are dependent on the complexity of your transaction.
You will be liable to pay court costs in instances where your claim relates to an unpaid invoice which is not disputed and enforcement action is not needed.
If the other party disputes your claim at any point, we will discuss any further work required and provide you with revised advice about costs if necessary.
These costs may be based on a fixed fee (e.g. if a one-off letter is required), or an hourly rate if more extensive work is needed.
Want to find out more? Our dedicated team of litigation solicitors in Birmingham are here to assist you.
What fees do I need to be aware of?
We will add VAT to our fees at the rate that applies when the work is done. The current applicable rate is 20%. The VAT element of our fee cannot be reclaimed from the debtor. Interest and compensation may take the debt into a higher banding, with a higher cost.
Please note that the costs quoted below do not include matters where enforcement action, such as the bailiff, is needed to collect your debt.
| Debt Value | Court Fee | Our Fee (excl. VAT) |
|---|---|---|
| Up to £5,000 | £205 | £1,000 |
| £5,001 – £10,000 | £455 | £1,000 |
| £10,001 – £50,000 | 5% value of the claim |
£2,500 |
| £50,001 – £200,000 | 5% value of the claim |
£3,500 (or 6% value of the claim) |
| Over £200,000 | £10,000 | £3,500 (or 6% value of the claim) |
VAT is not payable on disbursements such as court fees, but other disbursements such as barrister’s fees or transcript services may be subject to VAT at the applicable rate by the provider.
What is included in your fee?
- Taking your instructions and reviewing documentation
- Undertaking appropriate searches
- Sending a letter before action
- Receiving payment and sending onto you, or if the debt is not paid, drafting and issuing claim
- Where no acknowledgement of service or defence is received, applying to the court to enter judgment in default
- When judgment in default is received, write to the other side to request payment
- If payment is not received within 14 days, providing you with advice on next steps and likely costs
How long will my case take?
Matters usually take between 6-12 weeks from receipt of your instructions to receipt of payment from the other side, depending on whether or not it is necessary to issue a claim.
This is on the basis that the other side pays promptly on receipt of judgment in default.
Please be aware if enforcement action is needed, the matter will take longer to resolve.
