Costs will be the first thing you will want to know about before asking Dawsons to help you with any dispute.  You will want to know how our charges are worked out and how much they are likely to be.  You will want to know whether you could recover anything you pay us from anyone else and, most importantly, you will want to make sure that you know what you are letting yourself in for, and that you will get value for your money. 

You will find our approach to costs to be open, straightforward, and disarmingly frank.

Unlike continental litigation, where trials are largely conducted on paper and costs can be relatively small, English litigation has a reputation for being more expensive.  In relatively small commercial disputes worth up to £100,000, for example, the costs of going to trial can often exceed the amount in dispute.

The difference with English litigation, as opposed to the continental (and US) systems, is the principle that the loser should pay the winner's costs.  This encourages parties to settle their disputes early on, before costs mount up, rather than increase the amount at stake by fighting an expensive trial.  Costs and funding are now at the forefront of the litigation process - a process which encourages mediation and other forms of early dispute resolution, which requires parties to be upfront at the outset with the nature of their case and their evidence to encourage early settlement, and which forces parties to disclose full details of their costs at regular stages throughout the process.

Openness about costs, and regular assessments of what has been achieved against costs incurred, of the risks and likely rewards, are all fundamental to the process and are key to our approach.  Our main objective in all litigation is to achieve results beyond our clients' expectations, with the minimum possible costs and fuss, and to ensure in every case that our clients get value for their money.

Usually our charges are calculated on the basis of the time we spend working on each matter.  Our hourly charging rates for the different levels of experience of our lawyers are competitive.  We have also embraced the variety of new methods for funding litigation where, at least in the short term, it becomes unavoidable.

Third party funding
Financing commercial litigation with the help of a third party investor is becoming increasingly common, and we have the experience to be able to explore this funding option fully with our clients.  The third party will usually require an agreed percentage of winnings in return for the investment, where the percentage frequently increases as a function of how long it takes to achieve a successful result.  How the litigation is controlled needs to be agreed in each case, as does what should define a"win", but in appropriate cases this option is well worth exploring. 

After-the-event insurance
All types of commercial litigation can be funded by making use of after-the-event insurance cover for costs.  This involves taking out insurance to cover the other side's costs if you lose your case.  The amount of the premium will depend on your chances of success.  Typically it costs between 15% and 35% of the total value of the cover sought.  So if you estimate the other side's costs to trial are likely to be £150,000, and the insurers assess the merits of your case on the basis of a premium of 20%, the cost of the insurance premium will be £30,000 (20% of £150,000).  But that premium does not have to be paid until the end of the case.  Even then, because the cost of the premium itself is also insured, it will not become payable at all if you lose.  If you win, although the premium is then payable, it will usually be recovered in full from the other side (provided they are good for the money).  You need to give advance notice to the other side when cover is obtained.  But clearly the strategic advantage in commercial litigation of alerting the other side to the fact that insurers have reviewed the merits and are prepared to support your case is considerable.

If you would like more information on insurance cover for litigation costs, or the alternative methods available of funding litigation, please do not hesitate to contact us.