Is your legal claim worth pursuing? Rooney/Vardy case costs explored
Are you thinking of starting a claim against someone? Have you considered the costs involved and whether it would be financially sensible to start this process?
In the recent well known defamation case, the High Court ruled in favour of Coleen Rooney (“Coleen”), ordering Rebekah Vardy (“Rebekah”) to pay £1,501,000 in damages and 90% of Coleen’s costs at £800,000. Rebekah will also have to pay her own legal fees together with the costs incurred for having legal representation for the journalists that took part in this case.
See full trial judgment here...
High Court Judge Steyn stated Rebekah’s conduct of destroying evidence in the case meant she must face higher “indemnity” costs. The Hight Court ordered Rebekah to pay Coleen’s legal costs on the indemnity basis as the evidence in this case was destroyed and/or deleted. Rebekah’s actions led to her ultimately facing a higher costs penalty as she had failed to comply with her duty to preserve and disclose correspondence and items that were crucial to the case.
For further reading on defamation, please refer to our ARTICLE.
Standard or Indemnity Costs
The general rule regarding costs in litigation is that the successful party will often be awarded their costs from the opposing party. Subject to the rules on fixed costs, this is the usual position on costs, unless your claim is for a sum amounting to less than £10,000.00 in which case your dispute will be allocated to the Small Claims Court. In claims allocated to the Small Claims Court you will be unable to recover majority of your costs incurred on legal representation or court fees and limited fixed costs would be applicable in such circumstances.
Watch this space: civil litigation costs have been under the review by the Government who has announced fixed recoverable costs will be introduced for most civil cases worth up to £25,000 in the fast track; further details can be found here.
In circumstances where, as a successful party, you are ordered costs in your favour, it is important to note that it is extremely unlikely that you would be able to recover 100% of the money that you have spent, and that the Court retains discretion to make different costs orders.
Importance of Dispute Resolution
This case is one of many that shows that litigation can become a costly practice. Prior to engaging in Court Proceedings, the Court encourages all parties to engage in alternative dispute resolution. Although the Court cannot force parties to engage in any form of alternative dispute resolution such as mediation, arbitration etc, the Court may impose cost penalties to the parties who unduly refuse to take part.
If you are considering pursuing a claim, it is always worth seeking legal advice at the outset to find out whether the claim is worth pursuing and to obtain advice in relation to your concerns on costs. An initial meeting may stop you from spending thousands. It is important to note that litigation can be unpredictable therefore why exact costs cannot be stated based on previous disputes in the same field.
If you wish to discuss your claim or costs of the same, please do not hesitate to contact a member of our Dispute Resolution department here at Lawson-West Solicitors.
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