What are the different Types of Legal Costs?
The types of Legal cost include the Legal Fees charged by your solicitor, VAT (unless you are VAT registered) and disbursements. The Legal Fees charged by your solicitor can be on the basis of the time s/he spends or via a funding agreement, including a “no win no fee” agreement.
Legal costs are the sums due from a client for his/her solicitor’s fees and are often a necessary cost of any large transaction or dispute. Where a dispute exists that is required to be resolved in Court proceedings (litigation) then there may be an opportunity to recover some or all of such legal costs from your opponent.
Conventionally, legal costs are paid like any other business service – you agree the scope of work to be done and agree the basis for charging for those services, which normally is on the basis of an agreed hourly rate and the time spent by the solicitor.
The higher the rate, the more experienced the solicitor will be and the likely better quality of service you will receive, or alternatively an experienced and more expensive solicitor will provide the answer you desire in a shorter timescale or more in accordance with your commercial needs.
However, time passes quickly and a solicitor is introduced to your problem without any previous knowledge or familiarity with the parties involved, the background to some of these matters and the documentation. It takes some time to read into a matter, fully understand what is going on and then move towards providing a accurate and relevant advice.
This can be costly but there are alternative types of ways (or agreements) in which legal costs can be paid, either directly with your solicitor or via funding sought from a third party.
There are a number of arrangements that a client can enter into with his/her solicitor to achieve certainty in relation to their individual needs. Please visit our webpages which deal with the following alternatives:
- a. Fixed Fees
- b. Blended Rates
- c. Conditional Fee Arrangements
- d. Discounted Conditional Fee Arrangements
- e. Damages Based Agreements
- f. Fixed Fee Retainers
At Francis Wilks & Jones we are extremely familiar with all types of legal cost and can provide one that is appropriate to your circumstances.
Please call any member of our commercial litigation team for your consultation now on 020 7841 0390. Alternatively e mail us with your enquiry and we will call you back at a time convenient to you.
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