Disputes and Claims FAQs

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I've suffered a loss who do I sue?

 

It is important to correctly identify the parties to any case. For example if somebody trades as a limited company and contracted with you as a limited company, any claim against the individual who acted on behalf of the limited company will fail. Similarly if people trade in a partnership then any claim can be pursued against all of the partners who are all equally liable for any debt.

 

The first thing that we need to consider is whether there is a valid claim against you, the merit of defending the case and any counterclaim that you might have against your opponent. We will then advise you as to what the law says about quantifying the claim against you and any steps which the Claimant should have taken to minimise any loss they are claiming. Once we have considered all relevant arguments we will discuss with you the possibilty of negotiating a settlement which will avoid what can be expensive and time consuming court proceedings.

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How much do court proceedings cost?  

 

Legal fees can be disproportionate to the amount in dispute. We will discuss with you whether the benefit that you seek to gain justifies the potential cost. It might be that we agree to limit the fees to a certain level to see if we can resolve your case without necessarily commiting you to proceed further. In some cases we expect to recover all or at least some of your legal fees from your opponent. We also offer fixed fees for legal work rather than the traditional billing on a time spent basis, so that you don't get any nasty surprises with the fees that you incur. Other options include no win no fee agreements or insurance. We will discuss all of the options with you and help you to decide on what arrangement you are most comfortable with.

The other issue that we need to advise you on is the potential liability to pay your opponents legal fees if your case is unsuccessful and how much these are likely to be depending on the nature of the case.

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Do I have to attend court?  

 

This will depend upon the nature of the case and whether a settlement can be reached. For most hearings we can represent you without you having to attend. Very few cases reach a final trial when all witnesses would normally have to attend. 

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Can we apply for Bankruptcy as a remedy?

 

Insolvency proceedings are supposed to be a class action on behalf of all creditors but are regularly used as effective debt collection proceedings. They can be easily defeated if the debt is disputed but otherwise are effective means of pushing your debt to the top of the pile.

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Can I represent myself?  

 

Everybody has the right to represent themselves in court. This happens more often in small claims cases where the court's Civil Procedure Rules are not so strict. We will give you appropriate guidance on how to present your case if this is something that you would like to consider. With many cases though you may be at a disadvantage if you are unrepresented, particularly if there legal arguments to be made or your opponent is legally represented. 

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Will our credit rating be affected if we are sued?

 

This is something that is routinely threatened by debt collection agencies. The only way in which your credit rating will be adversely affected is if you do not reply to proceedings and a default judgment is entered against you or if you do not pay a judgment and enforcement proceedings are taken against you (or a payment order is made). It is possible to apply for default judgments to be set aside or for a certificate of satisfaction in relation to any adverse credit records. 

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There can never be any guarantee with court proceedings, and the courts should only be used as a last resort. Many factors can effect the outcome of your case. We do not know how witnesses are going to come across to a Judge or whether a Judge will prefer a different legal interpretation of the case. The fact that there can never be a guarantee of success is referred to as the litigation risk. Subject to this inherent risk, we can of course give you our opinion as to whether your case is strong, and whether it should be pursued, or settled on the best terms.