Civil Litigation costs

Civil Litigation costs

The costs of going to Court have always been high but some case have had such an impact that  litigants have had to sell their homes to settle outstanding Legal costs.  This is compounded   by the long-established principle in England and Wales that, generally, the losing party pays the winning party’s costs. The main justification for this rule is that a party seeking to enforce a right or demands legal proceedings should obtain a complete remedy. 

A recent case to hit the headlines regarded a cyclist, Robert Hazeldean who was ordered by The London Central County Court to pay yoga teacher, Gemma Brushett in the region of £100,000 in costs and compensation. This award was given despite the fact that Ms. Brushett stepped out in the road whilst looking at her phone. The Court found that Ms. Brushett  was contributary negligent in the matter but they ruled that Mr Hazeldean should have “been prepared at all times for people to behave in unexpected ways”. Mr Hazeldean is now facing bankruptcy as he is ordered to foot the cost of the two-day court case, which Ms. Brushett’s lawyers claim totals over £100,000.

Lord Justice Jackson was commissioned to undertake “a fundamental review” of costs of Civil Litigation in November 2008 and in April 2013 following a comprehensive review of the system, he proposed further extensive changes aimed at enhancing the court’s powers to control the costs of Litigation. Lord Jackson also proposed the introduction of new Fixed Costs in civil proceedings with a focus on controlling costs before they were spent as opposed to assessing them after the event.

Lord Chancellor David Gauke stated, “access to justice is enhanced if claimants are able to contemplate legal proceedings with an informed assessment of likely costs, rather than to avoid them altogether due to fear of high but uncertain liability.”

It remains to be seen how these Fixed Costs and their implementation operate and whether this does in fact streamline cases and procedures. If you are contemplating litigation contact GoodyBurrett and seek early advice as to the cost consequences.