Table of Contents
In Short
- Legal Fees Breakdown: Legal fees encompass court fees and lawyer’s fees, both of which vary based on the claim type and amount.
- Court Fees: These include the initial issue fee, a hearing fee before the judge, and potential additional costs for interim applications or enforcement of judgments.
- Fee Exemptions: Individuals (not businesses) may be exempt from court fees if they have low income, receive certain benefits, or possess minimal savings.
Tips for Businesses
To manage legal costs effectively, ensure your contracts are up-to-date to prevent disputes. Consulting with legal professionals can help identify potential issues early, potentially saving on litigation expenses.
As a person looking to take someone else to court, you should know the legal costs you will have to pay as part of your case. Legal fees can vary greatly, and the amount of money you pay will depend on:
- the type of claim you are bringing;
- who you are contracting for legal services;
- and how much you are claiming.
This article will explain some key points about paying legal fees. It will also touch on some instances where you may not have to pay for the legal costs of taking someone else to court.
What are Legal Fees?
Legal fees can refer to:
- the whole cost of taking someone to court; or
- the costs of legal advice that you will pay to your lawyer.
When you take someone to court, you will have to pay court fees alongside lawyer’s fees.
What Are Court Fees?
Court fees are paid at various stages over the course of your case. When you start your claim, you will pay an initial ‘issue fee’. You will then also pay a ‘hearing fee’, which happens just before your case is heard before a judge.
Further, you may also want to make an interim application as part of your case. You would usually use this if you need more time for something, but it can incur further costs. Further costs may be incurred if you miss deadlines and choose to apply for relief from sanctions. Finally, you may also have to pay to enforce a court judgement.
Although court fees are the cost of having a court case, there are some instances where you would not have to pay them. For example, if you are bringing a case in your personal capacity (as opposed to as a business capacity), you may be able to avoid court fees if:
- your income is below a certain threshold;
- you receive certain benefits from the government; or
- if you have little or no savings.
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What are Lawyer Fees?
On the other hand, lawyer fees are the costs you will pay for the legal services you receive from your lawyer. This can include your solicitor and any barrister you hire to argue before a judge. The structure of your legal bill will depend on the fee agreement between you and your lawyer, which you should settle before you hire their legal services. Some common structures include:
- an hourly rate fee, where you pay your lawyers for each hour that they spend on your case;
- a conditional fee agreement, where you only pay your lawyers if you succeed in your case (otherwise known as ‘no win no fee’); and
- a fixed fee, where you pay your lawyer a predetermined amount.
If you enter a conditional fee agreement, it is worth keeping in mind that most contracts will also include a ‘success fee.’ This means you will pay your lawyer a premium if they succeed in your case, meaning you take less of a cut of your overall earnings.
Who Will Pay Legal Fees?
You will most likely have to pay your own court fees as a business owner. However, a court can decide who will pay the lawyer fees involved in the case. Almost always, a court will issue a costs order to force the losing party to pay the winning party’s lawyer fees. Costs orders help encourage parties to enter into a settlement agreement and to try to solve their problems without going to court.
In a small claims court, however, it is usually the case that each party will pay for their own lawyer fees. A small claims court will deal with any legal claim that is typically up to £10,000 in value and can operate against an individual or a business.
Sometimes, you may not need a lawyer to deal with a claim in a small claims court, as the forms you must submit can be easy and accessible. In addition, you can apply online for a small claim. If your claim has a complex fact pattern or is difficult, however, you may not be able to access a simple small claims application.
As a result, it is a good idea to attempt to mediate or negotiate your differences with the other party before you start the process of taking the other person to court.
This fact sheet outlines how your business can manage a dispute.
Key Takeaways
You may consider taking another person or business to court as a business owner. This can be an expensive and lengthy process, but if you are successful, you may be able to have your lawyer fees and sometimes your court fees covered by the other party. However, this is at the discretion of the judge who has the power to decide against you even if you win your case. For example, this might occur if your behaviour was unreasonable at any point.
As a result, it is a good idea to attempt to settle your case before proceeding with a court claim. Court proceedings can be expensive and disrupt your business operations, even if you win.
If you have questions about taking a matter to court, our experienced disputes lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
A conditional fee agreement (otherwise known as ‘no win, no fee’) is where you only pay your lawyer if they win your case for you. This will also typically involve a ‘success fee’.
Court fees typically refer to the money you pay to the court that judges your case. This reflects a variety of costs, including the time of the court.
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