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COSTS IN LITIGATION FOR BREACH OF CONTRACT MATTERS

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COSTS IN LITIGATION FOR BREACH OF CONTRACT MATTERS

Your potential legal costs should always be considered before starting any legal action.  So, make sure you get advice on the risks of winning as well as the risks of losing.  

In our common law system, "costs follow the event". This statement does not mean that you will recover every dollar spent on your lawyers. Quite commonly, parties who get a costs order after winning judgment in an ordinary breach of contract case only recover between 60-75% of their costs. 

Frequently, if a judge is not given sufficient information when making an order for costs, they will order  costs "as assessed or agreed". Parties who can't agree on a figure will have to go through the cost assessment process.  Cost assessment simply means that the lawyers bills are sent to an expert who will - for a fee - assess the solicitor's costs based on scales under the Legal Profession Rules.  

Parties can also obtain an indemnity for their costs, by making offers to settle for a compromised sum. Either the plaintiff or the defendant can make such an offer.  If the offer is rejected by the other party, and the person making the offer is placed in a better position by the Court's judgment, that party's costs will be indemnified by the other party.

For this and other advice on costs or litigation generally, call us! 

19 Comments to COSTS IN LITIGATION FOR BREACH OF CONTRACT MATTERS:

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Qualified Family Law Attorney on Wednesday, 11 July 2012 10:46 PM
great tips for anyone wanting to leap into any legal battle. could end up saving them a lot of money.
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Angel Ricky on Saturday, 15 December 2012 7:40 PM
Awesome article! I think you are right we should consider our cost before starting any legal action. I need some advice about costs. I will call you soon. Thanks for this nice allocation. Carry on.
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Orlando Business Attorney on Saturday, 23 March 2013 6:03 AM
We find so many of our clients try to handle legal situations on their own. Very seldom does it ever work out well for them. Hiring an attorney to handle your legal cases usually will save you and your business time, money, and frustration.
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