Mediating costs disputes can prove invaluable. In recent years the battleground in litigation has been focussed as much on the costs of a litigation case than on the subject of the action itself.
The Courts have become clogged up with costs disputes to the extent that they could take longer to be resolved than the original action. Sometimes the costs of the costs dispute are nearly as much as the costs of the original action. Clearly there is a lot at stake both in terms of time, risk and money.
So, What Are Your Options?
You can go to Court and see what costs the court awards you. However, the disadvantages of this are:-
1) There are time limits for serving a bill.
2) You have to file points of dispute and there are penalties if you don’t get them in on time.
3) You have to pay a detailed assessment fee.
4) You wait for ages for a hearing date.
5) Who will be the Judge? You have no control over this.
6) The Judge determines the outcome – the parties have no say in the outcome.
7) The costs of the costs dispute can be very high, and pursuing them to a hearing carries a risk.
8) Case law – this is constantly changing, affecting certainty.
9) Part 36 Offers: there is a risk as to costs on these offers.
Mediating costs disputes:
1) You and your opponent pick the person to perform the mediation.
2) You choose the venue
3) You choose the time and date.
4) You can agree that the outcome is binding.
5) You can at worst reduce the number of points of dispute
6) You choose your budget.
7) You might not need to employ expensive costs counsel so often.
What happens in the mediation is left up to the parties to agree, but largely the mediator will attempt to assist both sides to find a solution that keeps everyone happy. The mediator will never impose a solution. It must be by agreement.
Frankly there is very little to lose by mediating costs disputes. Ask us to let you have our costs schedule and see what you can save in time and money.
Howard Nulty – 27.02.2016
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