Litigation costs: the hidden truth
By Erica Simpson
Legal costs are coming under close scrutiny by the court. A party to a dispute must put itself in the best possible position to maximise costs recovery. An indemnity may be included in a contract but this doesn’t always result in full costs recovery.
Managing costs is an increasingly important aspect of any dispute. For multi-track cases, with a value of less than £10m, parties are now required to submit a costs budget detailing estimated costs for each step in the litigation process and, where possible, to agree that budget with the other side prior to attending the first Case Management Conference. It is therefore imperative that parties work with the other side, and the court, to actively manage cases in a way that deals with costs effectively.
While the court will usually order the loser to pay the winner’s costs, the amount of costs awarded cannot be guaranteed. The court has the power to assess the proportionality and reasonableness of costs incurred. The Jackson Reforms implemented in April 2013 changed the overriding objective of the Civil Procedure Rules to require parties to conduct litigation ‘at proportionate cost’. As a result, we have seen an increasing trend where judges do not allow disproportionate and unreasonable costs to be recovered…
Click on the link below to read the rest of the Shoosmiths briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Shoosmiths
News from The Lawyer
Briefings from Shoosmiths
This is the second article on sustainable drainage systems (SuDS) and looks at options for maintenance.
6 April 2015 brought in a range of new options for members with defined contribution pension savings.
Analysis from The Lawyer
Compliance and corporate governance codes for large financial institutions will undoubtedly include provisions to regulate high pay in the future
There’s more to the ABS model than attracting the man in the street and procuring external investment. Partners at the big corporate firms, take note…