Who is your civil litigation banker?

I hate my neighbour, says one client.  I hate my ex-employee, says another.

Some point, some time in our lives we are all going to at least dislike someone.  Come on, be honest.

But not all of us are going to keep quiet of this negativity and get on with life.  Maybe or maybe not because of pettiness we choose to do something about it, either praying for that horrible person to be run over by a bus, starting to throw weeds to the neighbour’s garden or sending your nemesis a lawyer’s letter – of course, with a hole in the pocket with this one.

All still looking achievable, until when we arrive at court for some proper good litigation.  Then, I hate my lawyer.  For breaking my bank. Especially when I lose.

The general understanding for everyone is that the loser pays it all.

A word of wisdom – next time before you are contemplating going to a lawyer like me, please go through this checklist:

• Count your £ in your bank account and decide how much do you think you would love to spend on me,

• If you still like my face enough to proceed, happy days of course if you win.  What if you lose?

Okay.  This might change your mind a bit but hey, don’t leave yet.  The not so bad news is, you might have some help from someone or somewhere else.  You won’t necessarily break your bank, if the defendant is willing to negotiate an early settlement.

First thing first.  If you think you can’t afford any legal fees but genuinely have a case to pursue, check with the Citizens Advice Bureau, or Civil Legal Advice to see if you are eligible for free and confidential advice.

On the other hand, you are confident that you have a case, but you wish to privately fund your matter but don’t know where to start.  There is this “no win, no fee” legal service providers on the market who are willing to enter a “conditional fee arrangement” or a “damage-based agreement” for clients meeting terms and conditions for this service to only pay for their firm’s costs only if the clients’ claim is successful.  Different firms come with different terms and conditions, so before deciding on one you should ensure you have spent ample time understanding these details from all the firms you approach.  Even if you opt for a “no win, no fee” type of arrangement you would still have to pay for all disbursements (such as court fees, counsel’s fees if they don’t do a no win, no fee and other similar expenditure) during the course of litigation.

If you find others in a similar situation sharing the same cause of concern and would like to bring a matter to court, look up on solicitors’ firm which may take on group litigation cases with “third party funding”, also known as “litigation funding”.  Its working mechanism is usually complex, and you should ensure that your interests are carefully protected in the terms and conditions.

After reading all the above, maybe you are not buying into the idea of having funding arrangements with your solicitors.  Never mind.  Do you own a motor vehicle or a house? If yes, you might have unknowingly taken out pre-existing insurance policies.  Legal expenses insurance might already be included in your motor or home insurance as an indemnity on legal costs incurred (meaning before any potential dispute takes place) for certain types of claims, also known as a “before-the-event” insurance.  This is a useful type of insurance to have because it is a preventive measure and would normally be much cheaper in premium.  However, your insurer would require ongoing assessments from your solicitor on the merits at each stage before justifying whether that the insurance terms cover the costs of bringing your litigation to the next stage.

Don’t freak out if you haven’t had a “before-the-event” insurance taken out and have found yourself halfway into litigation, you might still have a choice on “after-the-event” insurance policy.  Just like its name, this type of insurance is normally subscribed to after a dispute has started and but would only benefit cases which are assessed with a high prospect of success.  If your case is likely to lose, your quoted premium would be very expensive because the risk of the insurance company paying out is high.

Regardless of your choice, you should never be pressured into signing any agreement with any solicitor very early on in a dispute, as this should be a tell-tale sign of a troubled relationship with your solicitor later down the line if your claim becomes heavily defended, or if you are advised to accept terms of settlement which you feel are clearly not in your favour. 

Remember – you always have a choice, and any decision you make should be an informed decision.

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