Our commitment to costs
Before commencing work in your matter, we will discuss the issues in your case with you either over the telephone or in person.
First consultation
Depending on the nature of your enquiry, we may agree to provide you with an initial consultation without charge. In the event that we cannot do so, we would usually limit our charges for our initial conference with you to approximately $200.00. Once it is established that you have a need for legal services, then before we commence work on your matter, we will provide you with an estimate of our legal costs and a costs agreement in writing.
At Etheringtons, usually we charge you according to the time that we have spent dealing with your matter. There are some exceptions to this, including conveyancing and undefended debt recovery proceedings where we usually charge a lump sum.
Estimate of costs
An estimate of costs should give you an indication of the likely amount that will be liable to our firm. In matters which are contested in Court, it is difficult to predict the manner in which the other side will conduct their case and for this reason, it is usually necessary for us to provide you with a range of estimates in cases that are litigated. We assess each case separately and we will assess, as best as we can at the outset, the amount of work that is involved in your case. We will give you a commitment that we will not exceed the estimate of costs which we have provided you without your knowledge and consent.
We usually issue accounts to clients on a monthly basis. We can assess specifics as to whether or not this is possible in your case. We recognise that it can be difficult at times to pay legal costs while a matter is ongoing before you have actually obtained any compensation. In some cases, we will agree not to issue any accounts at all until the matter has resolved.
Finance
In addition, we can also put you in contact with third party lenders, who may be able to advance funds to you so that you can use those for not only for the litigation, but also for actual living expenses while your case is ongoing. This is something that is particularly attractive to those who have undergone a separation from their partner and are expecting a settlement in family law disputes which can take a lengthy time to resolve. This funding can also be of great assistance in cases where a contested estate is in dispute and a person is in poor financial circumstances until such time as the matter is resolved.
At any time, you are generally able to ask us for an up to date account and we will provide you with one. We commit to providing you with not only with an account of our charges, but with an itemised account which shows the date on which the work was carried out, what work was actually done, who carried out the work and what the charge was.
Disbursements
In addition to the costs that Etheringtons solicitors will incur, it is common in most cases for you to also incur what is known as “disbursements”. These are expenses which may be incurred in your case for payments to third parties. For example, the most common disbursement are legal fees to be paid to a barrister who may provide you with an advice and/or appear for you at a hearing in court. We will only instruct a barrister with your express authority and we will provide you with an estimate of their costs in addition to our costs before doing so. Other disbursements which are commonly incurred are filing fees which are payable to the court (which can vary from $60.00 to over $1,000.00). Fees may also be payable to experts, who may give an opinion to assist your case. For example, it may be necessary to obtain an opinion from a doctor, in which case you will be liable to pay the doctor’s fee. Again, any disbursements to be incurred to third parties, will be advised to you beforehand for your authority.
Costs agreement
The costs agreement which we give you will govern all of these issues. We encourage you to read our costs agreement when you receive it and ask us any questions in relation to it.
Recovery of costs
Generally, in most cases that are disputed, there will be the ability for you to obtain some of the legal costs you incurred from the other side if you succeed in your case. Not all cases provide for this, so we will advise you if your case is one in which you can obtain your costs ultimately refunded to you by the losing party. Equally, if you lose a case you initiate, you could be liable to pay for the other side’s legal costs. For this reason, we aim to provide you with an opinion at the outset on the strengths and weaknesses of your case. It is also important to realise this still applies even if we (or any firm) take on a case on a ‘no win/no fee basis’. Therefore, we must carefully examine all of the issues at the outset in order to protect you as best as we can from this occurring.
For cases where you are successful and entitled to recover your legal costs from the other side, the law only allows for a recovery of approximately 60% to 80% of your legal costs in most instances. This is known as “ordinary or party/party costs”. You are therefore usually not likely to recovery the “gap” fees. There are strategies which we will advise you on where you can potentially recover all of your costs, or virtually all of them, so you have no gap fee to pay. We always strive to achieve this for clients where possible.
