Commercial Litigation Expenses: Strategies to Help Businesses Manage Legal Costs

1. Understanding the Full Scope of Costs

Most people consider solicitor’s fees primarily during the course of litigation, and understandably so – however,  costs can also include court fees, expert witness fees, costs for document production and review, and potential settlement figures. Businesses must be accurately aware of and prepared for these multifaceted expenses from the outset.

2. Engaging in Early Case Assessment

Early case assessment involves evaluating the merits of your case, potential outcomes, and associated costs at the outset. This helps in making informed decisions about whether to pursue litigation or seek an alternative resolution. Understanding the strengths and weaknesses of your case can save considerable time and money. Cost recoverability is also an important factor. To this end, it is important to be aware that there are now court-implemented Fixed Recoverable Costs regimes, with these Fixed Recoverable Costs being dependent on the court “Track” that your matter is allocated to, the Fast Track or the Intermediate Track. It is essential to be aware of the costs you would likely recover in conjunction with what you are likely to incur.

3. Alternative Dispute Resolution (ADR)

ADR methods, such as without prejudice discussions and meetings or even a mediation, can be more cost-effective than going to trial. These approaches can often lead to quicker, mutually acceptable outcomes without the lengthy and expensive process of court litigation. Engaging in these discussions ought to be considered from the outset.

4. Solicitors Fee Arrangements & Funding Options

Discussing fee arrangements and the available funding options to you, with your solicitors, can provide more predictable and manageable costs. Whilst typically litigation fees will be subject to an hourly rate - options such as fixed fees, capped fees and contingency fees, can be agreed in order to help businesses avoid the unpredictability of hourly billing and budget for legal expenses. There are multiple options that can be explored with your solicitors.

5. Budgeting

Establishing a budget for your litigation then consistently checking and reviewing it, ensures that legal expenses are kept in check. It is vital that businesses regularly track costs against the budget, allowing for adjustments and better financial planning as the case progresses.

6. Insurance

Some businesses may have insurance policies that cover legal fees and costs associated with litigation. Reviewing insurance policies and understanding what is covered can provide financial relief and mitigate the impact of unexpected legal expenses.

Conclusion

While the costs of commercial litigation can be daunting – through awareness of costs involved as well as awareness of the merits of your case, careful planning, and budgeting - these challenges can be navigated effectively.

Hiring a legal team with expertise in commercial litigation can significantly influence the efficiency and cost-effectiveness of handling a case. At Forbes Solicitors, our vastly experienced Commercial Litigation team will provide strategic solutions - navigating the complexities and intricacies of your dispute thoroughly, whilst minimising your legal costs.

Should you require our assistance, please do not hesitate to contact us.