Costs Protection in Litigation

Litigation is expensive. 

Each party to a dispute is likely to spend many thousands of dollars in an attempt to prosecute or defend their case.  The costs consequences for the losing party will be significant. 

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Costs orders by a court typically follow the event, meaning that that the successful party to litigation will receive a costs order in their favour and the losing party has to pay the successful party’s legal costs as well as their own. 

Costs will usually be “ordinary” costs aka “party and party” costs. In some rare instances a court may also order “indemnity” aka “solicitor and client” costs.  The differences between these are quite significant and a successful party who receives the benefit of a costs order may only expect to recover 1/2 to 2/3 of what they actually pay their lawyer.

For this reason, Steps that can be taken to attempt to protect all reasonable costs a person may pay their lawyers and to receive an ‘indemnity’ costs orders through making offers to settle.

Talk to me today. You should not make any offer, or accept any offer without legal advice.