Whose Money Is It Anyway?

Litigation can often be very expensive; sadly sometimes disproportionately so compared to the value of the dispute measured in purely financial terms.  Increasingly the courts are showing an inclination to limit the extent of legal costs and significant changes are to be introduced from 1 April 2013 that will greatly enhance the courts' powers in this regard.

The starting point is that solicitors look to their own clients to pay their costs but the normal rule in many forms of litigation is that the loser pays the winner's legal costs.  Historically the recovery rate by the successful party has invariably been less than 100%; often in the region of 60% or 70%.  However, 1 April 2013 will bring about a 'sea change' in the court's attitude towards costs in respect of the majority of proceedings commenced after that date.  In future, there will be much greater emphasis on 'proportionality'.