Dispute Resolution Fees

Business-to-business debt recovery for claims of up to £100,000

Undefended Debt Recovery

These costs apply where your claim relates to an unpaid invoice which is not disputed and enforcement action is not needed. If the other party disputes your claim at any point, we will discuss any further work required and provide you with revised information about costs if necessary. This may be on a fixed fee (e.g. if a one-off letter is required) or an hourly rate if more extensive work is needed.

Letter before action:

• Debts up to £5,000: £150 plus VAT
• Debts between £5,000.01 and £10,000: £200 plus VAT
• Debts over £10,000 and up to £25,000: £250 plus VAT

A letter before action is usually sufficient to prompt payment of any outstanding monies owed to you.  However, if that is unsuccessful and you decide to commence court proceedings to recover the monies owed to you, our fees to commence court proceedings and the necessary court fee, are set out below.

Issuing Court proceedings and obtaining an undefended judgment in default: £350 plus VAT.

Court fees*

• Debts up to £5,000: £35 - £205
• Debts between £5,001 and £10,000: £405
• Debts over £10,000 - £200,00: 5% of the value of the claim
• Debts over £200,00: £10,000

*Please note that you may be exempt from paying the court fee if you are in receipt of certain benefits or are on a low income. The Court fee may be subject to change.

Our fee includes:

• Taking your instructions and reviewing documentation
• Sending a letter before action
• Receiving payment and sending onto you, or if the debt is not paid, drafting and issuing claim
• Where no Acknowledgement of Service or Defence is received, applying to the court to enter Judgment in default
• When Judgment in default is received, write to the other side to request payment
• If payment is not received within the required period of time, providing you with advice on next steps and likely costs

For any debts over £25,000 we will discuss our fees with you and advise you of the Court fee payable.

Matters usually take 4-8 weeks from receipt of instructions from you to receipt of payment from the other side, depending on whether or not it is necessary to issue a claim. This is on the basis that the other side pays promptly on receipt of Judgment in default. If enforcement action is needed, the matter will take longer to resolve.

Defended Debt Recovery

If during the debt recovery process your claim becomes disputed, the costs will increase, and we will discuss the best way forward with you and advise you of the cost implications.

Defended debt recovery claims will be charged on an hourly rate. Our hourly charging rates range from £110 to £220 plus VAT, depending on the seniority of the member of staff dealing with the claim. The costs of pursuing such claims (beyond the fixed fees referred to above) will depend upon the amount of work that is involved and the issues raised (see below). Given these factors, our costs for handling the claim to a conclusion could range from £2,500 to £100,000 plus VAT.

Where claims are defended, the costs to be incurred will vary depending upon:

• The number of disputed issues
• The complexity of the issues/law
• The number of parties involved
• The number of witnesses involved
• The extent of or the need for expert evidence
• The tactical steps that have to be considered
• The Court’s requirements and directions
• The extent of compliance with Court orders by both sides

In addition to the fact that we are unlikely to know what position will be taken by an opponent at the outset, issues may arise during the course of a claim which cannot reasonably be foreseen at the outset. Such factors may have a significant impact on the work involved, and, therefore, the cost incurred.

The key stages of defended debt claims are likely to be:

• Issue of claim
• Filing of Defence (and Counterclaim, where appropriate)
• Defence to Counterclaim, where appropriate
• Court administration papers exchanged and completed
• Court timetable set, providing for:
• Filing of any other claims
• Exchanging documentary evidence
• Exchanging witness evidence
• Obtaining expert evidence
• Other preparatory hearings
• Trial

However, as indicated above, issues may arise during the handling of the claim which result in other steps having to be taken or to change deadlines that have already been set. These steps will add to our costs and may result in additional Court fees being paid.

Other fees we may have to pay third parties to carry out roles on our behalf (known as disbursements) may include:

• Barristers’ fees for preparing Court documents, advising on issues in the case and conducting hearings, including the trial. The amount of these fees will depend on the same issues that will affect the amount of our charges and, therefore, will be in the same sort of range as indicated for our own charges. Barristers’ fees are also likely to be subject to VAT.
• Experts’ fees. Their involvement in the case will depend on the subject matter of the claim. The amount of their charges will depend on the amount of work they are required to undertake and their experience/seniority. Consequently, it is impossible to indicate at the outset how much such costs might be. Most experts’ fees are likely to be subject to VAT.
• Court fees. See above in respect of issue fees. It may also be necessary to pay additional Court fees during the claim.

Enforcement

Once judgment is obtained, it may be necessary to enforce that judgment through further Court action. We can provide you upon request with details of the options available for enforcement and the associated costs.

 Please note:

• References to VAT are to the prevailing rate, which is currently 20%.  
• The VAT element of our fee cannot be reclaimed from your debtor
• Interest and compensation may take the debt into a higher banding, with a higher cost
• The costs quoted above are not for matters where enforcement action, such as the bailiff is needed to collect your debt.

We would encourage any prospective client to contact us to discuss your individual needs and requirements and we can endeavour to tailor a cost-effective plan around your circumstances. You can contact us here or telephone 01938 552727