Posts Tagged ‘litigation costs’

Reasonable reward for reasonable risk

Friday, November 25th, 2011

The case of Fortune v Roe has re-visited the question of success fees and what the correct success fee ought to be if certain risks are removed from the litigation.

In this case the Claimant had been involved in a very serious car accident but by the time she entered into a CFA liability had been admitted and judgment entered for damages to be assessed. The CFA provided for a success fee of 100%. Sir Robert Nelson found that there was no risk to the recovery of charges to the solicitor and there could not be said to be a litigation risk. Therefore the only risk was of receiving no costs after beating a Part 36 offer and the success fee would represent compensation for that. As a result the court found that a success fee of 100% could not be justified and the figure of 20%, awarded by the first instance judge was upheld.

This shows the importance of getting the risk assessment on the CFA right. If it’s not an accurate assessment then we can expect the courts to get involved – with cost consequences!

Posted by Nichola Evans, who specialises in professional indemnity work, directors and officers, legal expenses insurance, conditional fee agreements and after the event insurance and commercial litigation.

Nichola Evans

Nichola Evans
020 7337 1019
nevans@brownejacobson.com

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Cutting the cost of IP litigation

Thursday, January 14th, 2010

After several months preparation a report was published today which makes recommendations aimed at reducing costs of IP cases and speeding up the process of dispute resolution.

A constant criticism of litigation is that the costs involved in pursuing or defending a claim are disproportionate. The risk of having to pay the other side’s costs in the event of losing an action or even the unrecoverable costs of winning a claim are a barrier to using the courts for dispute resolution particularly for small and medium sized enterprises. It has been estimated that the average cost of taking a case to trial is in the region of £700k (although our experience is that we would not expect the average case to cost that much).

The new proposals contained in a report written by a serving Judge of the Court of Appeal and bearing his name (Jackson) include:

  • reforming the Patent County Court and introducing a cap on recoverable costs (£50,000 in patent cases, £25000 for all other IP cases);
  • introducing a fast track and small claims track for cases with low monetary value and clearer forms of pleadings

The proposals are welcome as if implemented they will enable us to give greater certainty regarding the exposure to costs of litigation. If such greater certainty is achieved will it mean greater confidence in the court system? What do you think?

Peter Ellis

Posted by Peter Ellis
0115 976 6267
pellis@brownejacobson.com

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