Litigation costs
Navigating costs in litigation 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 incurred 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 for dispute resolution 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.
Thank you so much for your professional advice regarding my business insurance. Highly recommend for being honest.
I had a great experience with RLK. They really helped me and ultimately won our case. The staff are incredibly friendly and professional. A special thank you to Nazia for her patience with me throughout the process. I highly recommend this company
Excellent service from RLK. Amrit and Sonia dealt with our house move efficiently and professionally, providing support which went above and beyond what we could have expected. Amrit gave us timely and very helpful advice on a number of tricky issues and did his level best at all times to meet our specific needs. Amrit clearly has very good technical knowledge, and he is very friendly and approachable. Sonia's client care was also excellent. Her advice on many matters really made a difference. She is invested in making the moving process as stress free as possible and providing the highest possible level of support for her clients. This level of assistance sets the firm apart, I believe, from others.
I was lucky enough to have a successful outcome with Mia at RLK Solicitors obtaining my Business Interruption Claim when I had previously been told NO by my brokers. Really satisfied
Rlk Solicitors are absolutely outstanding. I dealt with Manisha and Sophie, and the service received was fantastic. With the hard work and determination from Rlk in regards to my business interruption claim, they made the whole process a walk in the park. Updates were very regular, and communication was kept throughout the whole process. I'm so grateful for everything they have done for me and the rest of the hairdressing, beauty, and barbering community. Thank you once again team Rlk 🙏 your hard work, dedication, and determination will be forever appreciated from my business
Honestly can’t thank Mia at RLK enough! I really didn’t think I would ever get a settlement and without your help and dedication I probably wouldn’t have! As a small salon owner this literally is the most welcome news to end what has been an incredibly stressful financial few years. Thank you again!
Rlk have been fantastic , getting justice for many salons who were poorly treated by Salon Gold . It has been a long journey but with Rlk solicitors persevering I finally have the outcome that I hoped for . I can’t thank them enough and totally recommend them to anyone who needs legal representation.
Fantastic level of service received from RLK during the sale of a property. Amrit dealt with our conveyancing and was extremely efficient and on the ball throughout. Would not hesitate to recommend...
⭐⭐⭐⭐⭐We are an independent, family-run hair and beauty salon, and we cannot thank RLK Solicitors enough for their incredible support. They helped us take a claim against our insurance company, who refused to pay our business interruption insurance due to the forced government shutdowns in 2020 and beyond.RLK worked tirelessly to represent us and achieved a settlement far beyond what we ever expected. They were patient and persistent, even when we dragged our heels providing the necessary information.We received our offer today, and we are beyond grateful. This settlement will make a huge difference to our salon and our team. Thank you, RLK Solicitors, for your instrumental role in helping us through this challenging time. We couldn't have done it without you.Massive thank you!
Wilson is a highly professional and reliable individual who expertly guided us through the process of purchasing a new home in the UK. His extensive experience provided us with peace of mind as we relocated to a new country. Wilson diligently oversaw the process from start to finish, ensuring a smooth transition even before our move to the UK.I wholeheartedly recommend his services if you require a skilled conveyancing professional.
Absolutely fantastic law firm , all staff are very professional always answer emails and calls straight away . Would 100% use again
As a first-time buyer, I truly appreciate Wilson's patience, clear explanations, and constant communication throughout the house-buying process. His expertise and guidance made a complex experience smooth and empowering, and I couldn't be happier in my new home!
RLK solicitors have acted successfully on my behalf in a recent business interruption claim against my insurance company. They were professional, friendly and extremely easy to deal with. Would highly recommend them.
Wilson is professional and reliable. Whenever we had any enquiries during the property purchase process, he would give us a call to explain in details and keep us updated of the progress.
RLK worked on our business interruption claim against our insurers for a period of over 2 years. In that time, we were kept informed about everything that was happening on a very regular basis. The team at RLK were very straight about what the process would be, what the likely timeline was and what was required from us in terms of information and figures. At no point did they ever over promise and under deliver - quite the reverse in fact. The outcome was as good as we could have hoped for and I have nothing but praise for Chris Guy and his team who were absolutely fantastic from start to finish. Thank you.
After an extremely long and stressful battle due to a business interruption case RLK came to the rescue and were 100% the best solicitors for the job! They were extremely helpful, professional, and understanding throughout the past 3 years. The communication was amazing, I never felt left out or that I didn’t know what was going on. They strived to get the best outcome possible for me and I will forever be grateful to them. I would 100% recommend RlK to anyone.
RLK solicitors - What an incredible firm! The team fought tirelessly against our insurers in relation to the non payment of business interruption insurance. We were kept in the loop throughout the whole process. A member of the team was always on hand to answer any queries. Thank you RLK!
Very professional. Respond quickly. Always there for you. Whole team I've worked with have been amazing.
I was involved in a complicated case involving Tennants in Common, a poorly written Deed of Trust (not written by this company). The solicitor dealing with the matter joined RLK at which point the now prolonged case began to go forward. We worked with Simon Thompson who had to work through a considerable number of communications.He grasped the basics quickly.Since then the case has progressed to a successful conclusion.Throughout they have been excellent communicators clarifying legal issues for us. Clear with their advice and support. Never made any false promises being honest where any doubts arose.I intend to continue to use this company for the now possible sale of my property.I would highly recommend this company.
Thank you, excellent service and lovely staff. Dealt with Simon regarding passport applications.
Rlk are doing an amazing job, they are continuously fighting to get the payouts we deserve from our insurance companies. I’ve been kept updated the whole way through the process, and they have put so much hard work and determination into it from day 1. Would 100% recommend Rlk.
I highly recommend WilsonHe is always polite, patient, and responsible. He took the time to understand my case and explain the process to me in a clear way. He was always available to answer my questions and provide me with updates on my case. I am very grateful for his help and I would definitely recommend him
I whole heartedly can’t recommend RLK solicitors enough. Their commitment and communication throughout my case has been second to none. Lucy has kept me informed, and updated me every step of the way. Whatever the outcome of the arbitration, I know that they have put their heart and soul into my case and I am beyond grateful for their dedication and determination. Great work team.
RLK have been and continue to be amazing working hard for my business. Lucy keeps me up to date with all the information. Very friendly and professional, who know their stuff!!Thank you for fighting for us all in the beauty and hair industry
What legal costs 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.
Understanding Costs in Civil Litigation
In civil litigation, ‘costs’ refers to the expenses incurred during the legal process. These can include solicitor’s fees, court fees, barrister’s fees (if applicable), and other disbursements.
Types of Costs
- Fixed Costs: In some straightforward cases, fixed recoverable costs apply, meaning there’s a set amount you can recover if you win.
- Recoverable Costs: These are costs you can potentially claim back from the opposing party if you’re successful in your case.
- Non-Recoverable Costs: Some costs, like VAT on legal fees, are not typically recoverable.
The ‘costs regime’ outlines the rules and procedures for claiming and assessing costs. In October 2023, a new fixed recoverable costs regime came into force for certain civil litigation cases.
Costs Management
For more complex cases, ‘costs management’ may be implemented. This involves providing the court with a budget outlining estimated costs at different stages of the litigation.
Costs Assessment
If you win your case, the court may conduct a ‘summary assessment’ of costs during the hearing or a ‘detailed assessment’ at a later stage. This is to determine the final amount of costs the losing party must pay.
FAQs:
- What is a Costs Order? A Costs Order is a court ruling that specifies which party is responsible for paying the legal costs of the case.
- What is Indemnity Costs? Indemnity costs are awarded in exceptional circumstances and allow for a greater proportion of costs to be recovered compared to the standard basis.
- How is the Amount of Costs Determined? The amount of costs awarded depends on various factors, including the complexity of the case, the conduct of the parties, and the applicable costs regime.
- Can I Recover All My Legal Costs? The general rule is that the losing party pays a proportion of the winning party’s costs. However, the court has discretion and may not award the full amount.
- When does the new Fixed Costs Regime apply? The new fixed costs regime applies to certain civil litigation cases valued up to £100,000 that were started on or after 1 October 2023.
