How to deal with legal disputes in your clinic

With the cost of legal proceedings increasing, businesses are now wary about bringing a claim against someone who has done them wrong. Unfortunately, even disputes with a good chance of winning are going unheard, damaging the success of UK businesses.

But some law firms are tipping the balance back in favour of the claimant. If a business has a claim, against an opponent with the means to pay, law firms with specialist commercial dispute resolution expertise will find a funding solution for the case. So, a potential claimant has to ask themselves; do my lawyers know what they’re doing and how much will I invest in fighting this case?

In order for a claim to have prospects of success, it must contain all the ingredients required to establish a legal claim. It is important to remember that disputes can often be resolved without the need to start court proceedings – lawyers that specialise in litigation are specialist negotiators and problem solvers.

The right law firm will be creative in their approach to problem solving, considering the practical options available to assess if a resolution can be reached without the need to go to court. In terms of funding the dispute, the right law firm should be well-versed in the range of funding products available to you, and be able to distil the wealth of information into easy to understand options.

There are various costs that claimants will need to consider, with different products available to address each one. Detailed guides covering funding options will be available from most law firms, but in brief, the costs are:

1. Your own lawyer’s costs. One option is to enter into a conditional fee agreement, where some or all the costs are only payable if you are successful and your lawyers share at least some of the risk with you.

2. Your own expenses. Often referred to as “disbursements”, these are things like court fees, barristers’ fees and experts’ fees.

3. Your opponent’s costs and expenses. If your claim is unsuccessful you are likely to be ordered to pay at least some of your opponent’s costs.

Funding is not free. Where the payment of costs depends on a successful outcome, there will of course be more to pay if you are successful, to balance the risk of that fee being lost. A third-party funder will charge a fee, which is usually calculated as a percentage of the damages awarded or the monies invested.

After-the-event insurance will attract a premium, however, these costs can sometimes be deferred until conclusion of the case. The benefit is being able to hedge the risk and limit it. Claimants that use funding products may receive less of their claim overall, but it enables them to limit the potential liability they would otherwise be exposed to if they lose.

Gemma Carson is a partner at law firm Wright Hassall and heads the commercial litigation team. She specialises in commercial litigation and has a wealth of experience dealing with all types of commercial contract disputes, arbitration proceedings and professional negligence claims. Carson regularly writes on technical matters relating to contract disputes, able to explain often complex legal arguments in simple terms that make issues easy to understand for those facing the challenge of running their own business.