Costs structure

Our Disputes Team manages a broad range of matters varying both in work type and likely cost. Most of the work we do involves complex disputes for which we will provide bespoke estimates of likely costs. The figures on this page relate only to debt recovery and only up to a maximum value of £100,000. The costs below do not cover defending debt claims or claims in which there is a substantive dispute.

Often, as a case develops, new factual or legal issues require further analysis and so initial assumptions regarding work required and overall costs need to be assessed on an ongoing basis and, if necessary, revised.  This also applies in debt claims. Accordingly, if we agree to take debt recovery action on your behalf and your debtor subsequently decides to raise a substantive dispute, we will discuss and agree with you on bespoke terms what the costs of representing you on that basis will be.

Debt recovery

This page only covers undisputed debt claims. The seven key steps involved in such debt recovery claims are as follows:

1. Reviewing documents and taking your instructions.
2. Advising on your claim.
3. Researching the debtor’s ability to settle the debt owed.
4. Preparing and sending a Letter Before Action.
5. Receiving payment and sending the same to you, or if the debt is not paid, drafting and issuing a Claim Form and Particulars of Claim.
6. Applying to Court for Judgment in Default, if appropriate.
7. Demanding payment from the Debtor.

The costs set out below assume that any debt collection work does not meet any substantive resistance. Accordingly, these costs do not include work beyond obtaining Judgment in Default and a single subsequent demand for payment. If the debtor defends or disputes the claim or enforcement or challenges Judgment once received (for instance by applying to set aside or appeal the Judgment), we will discuss and agree with you those costs as the case develops.

Our Charges

Our work is based on hourly rates, broken down into units of 6 minutes. Our most experienced solicitors charge between £350 plus VAT and £475/hour plus VAT, our associates charge £250/hour plus VAT, our trainee solicitors and paralegals charge £150/hour plus VAT. Occasionally, if appropriate for your circumstances, we may offer to work on fixed fee, conditional or damages-based agreements. If you would like further information, please ask us.

We will always consider the specific circumstances of cases on which we agree to act. However, to give an idea of the broad scope of likely costs for cases which fit the seven steps above:

• Straight-forward claims (for instance a contractual dispute limited to a small number of admitted documents) – our fees are likely to be in the range £1,500 to £3,000 plus VAT.
• Where it is necessary to take more detailed instructions from you (for instance where some of the facts are not recorded in writing, or where there are a greater number of documents) – our fees are likely to be in the range of £3,000 to £5,000 plus VAT.
• In more complex claims, (for instance where the basis for the claim involves a more extensive enquiry or more involved legal issues, or where the debtor(s) circumstances require greater research) our fees are likely to exceed £5,000 plus VAT.

Disbursements

In addition to our fees, you may also need to pay ‘disbursements’. These are costs of third parties, associated with the work we do and that we can agree to pay as your agent. These additional costs can include:

• Instructing a barrister to advise on a complex specialist area of law, to settle court documents or to represent you in Court (barristers fees vary considerably depending upon the area of law, complexity of the dispute and the length of time of the hearing). We would always discuss with you instructing a barrister before any commitment is made.
• Instructing process servers to serve documents on the debtor (these are often at least £250 plus VAT).
• Court fees. The fee for starting your claim depends on the value of your claim. The fee will range from £35 (debts of £300 or less) to £5,000 (where the unpaid debt is £100,000). Court fees are also paid at other stages of the claim as it progresses. Further details can be provided if required.
• Instructing a foreign lawyer to advise on a foreign law aspect or to assist with serving or researching a foreign-based debtor.
• Instructing an enquiry agent to locate a debtor.

Before instructing any third party, we would discuss this with you and seek your agreement. All disbursements paid on your behalf are billed ‘at cost’.

VAT

The figures above do not include VAT. Where VAT applies this will be added to our invoice.  Court fees do not attract VAT. Most other disbursements attract VAT but we will advise as appropriate during the course of proceedings before any such disbursements occur.

Broader costs issues

Broadly speaking, you can demand that your costs and disbursements are paid by your opponent if you succeed. This demand can include your disbursements and (unless you are VAT registered) the VAT you pay.

Timing

If a debt is undisputed and your opponent does not respond to proceedings, Judgment can be obtained within 3 – 4 months. If a defence is filed, proceedings take longer than this. A case that goes all the way to trial can take between 12 and 24 months.