Navigating Legal Costs: A Guide for Litigants in Person in the UK

The number of Litigants in Person (LiPs) in the UK has risen significantly in recent years, with Ministry of Justice statistics showing a 52% increase in LiPs in family courts alone since 2011. This surge has been largely attributed to the legal aid cuts introduced by the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO). For individuals navigating the UK legal system without professional representation, understanding the potential costs involved is crucial. This guide aims to demystify legal costs in small claims and fast-track cases, helping you make informed decisions about your case in England and Wales.

Small Claims (up to £10,000)

In small claims cases, as defined by the Civil Procedure Rules (CPR):

• Each side typically pays their own legal costs. The general rule is that each party bears their own costs, regardless of the outcome.
• The losing party may have to pay the winner’s expenses. These can include court fees, but not the legal fees for a solicitor unless there has been unreasonable behaviour.
• The court can order costs if a party behaved unreasonably. For example, if a party failed to comply with court directions or engaged in misconduct.
• New rule from 6 April 2023: A losing claimant may have to pay the defendant’s costs in personal injury cases if found to have lied or grossly exaggerated injuries. This is part of the broader effort to curb fraudulent claims.

Fast-Track Claims (£10,000 – £25,000)

For fast-track claims, as outlined in Part 28 of the CPR:

• The Fixed Recoverable Costs (FRC) system applies. This means that the costs the winning party can recover are capped and fixed by law, depending on the stage at which the case is resolved.
• The losing party pays the winner’s costs, but the amount is fixed. The amount varies based on case progress, value, and complexity.
• Litigants in Person can claim up to two-thirds of fixed costs. This allowance helps those without legal representation recover some of the costs associated with the time spent on their case.
• Exceptions to FRC: These include cases involving children, mental capacity issues, pre-October 2023 personal injuries, and housing claims.

Fast-Track Claims Before 1 October 2023

For cases initiated before this date:

• The loser generally pays the winner’s legal costs. Before the extension of FRC, this rule allowed for more flexible cost recovery.
• Solicitor fees can range from £261 to £512 per hour in London or £186 to £261 per hour outside London. These rates are based on the Guideline Hourly Rates (GHR) published by the judiciary.
• Litigants in Person can charge £19 per hour for case preparation. This rate is set under CPR 46.5, though higher amounts can be claimed with evidence of financial loss.
• Higher rates are possible with evidence of financial loss. If a Litigant in Person can demonstrate financial loss due to time spent on the case, they may recover more.
• LiP costs are limited to two-thirds of a solicitor’s reasonable costs. This cap ensures fairness in what can be claimed.
• It’s crucial to prepare a detailed statement of costs before trial. This document outlines all the costs you wish to recover and must be presented to the court.

Personal Injury Claims (pre-1 October 2023)

In these cases:

• Qualified One-Way Costs Shifting (QOCS) applies. This rule protects claimants from paying the defendant’s costs if they lose, except in specific circumstances.
• A winning claimant gets fixed costs if the claim started via the Claims Portal. This portal is used for low-value personal injury claims and streamlines the process.
• A losing claimant is usually protected from paying the defendant’s costs. This protection encourages claimants to pursue legitimate claims without fear of financial ruin.
• Exceptions include cases of fundamental dishonesty or struck-out claims. If a claimant is found to have acted dishonestly or if their claim is struck out for other reasons, they may lose QOCS protection.
• Changes from 6 April 2023: Defendants can request a costs order against the claimant’s winnings, including settlements, under certain conditions.

Expenses (Disbursements)

Expenses can include:

• Court fees
• Experts’ fees
• Photocopying and postage costs

The court considers if an expense was:

• Actually paid – You must have incurred the expense.
• Reasonable to pay – The expense should be necessary for the case.
• A reasonable amount – The amount spent must be fair for the service or item received.

Keep detailed records and receipts, as you can usually claim back reasonable expenses if you win. Remember to comply with UK GDPR when storing personal information.

Tips for Managing Costs

1. Plan how to use a solicitor’s time effectively if you’re partially represented. Consider handling simpler tasks yourself and saving solicitors’ input for complex issues.
2. Consider fixed fees for specific tasks. This can provide certainty over costs and prevent unexpected bills.
3. Keep detailed records of expenses and time spent. Accurate records are crucial for recovering costs.
4. Prepare cost statements well before trial. Ensure all potential recoverable costs are documented.
5. Be aware of potential costs if you lose. Understanding the financial risks involved can inform your decisions.
6. Consider settlement offers carefully. Settling early can often save money, even if the settlement amount is lower than what you sought.
7. Remember to ask for costs if you win at trial. Don’t forget to submit your claim for costs if you are successful.

Case Study: A UK Litigant in Person’s Experience

Sarah, a small business owner from Manchester, successfully represented herself in a fast-track claim against a supplier. By meticulously tracking her expenses and time, she was able to recover £3,500 in costs when she won her case. “Understanding the costs system was crucial to my success,” Sarah said. “It allowed me to make informed decisions throughout the process.”

Where to Seek Free or Low-Cost Legal Advice in the UK

1. Citizens Advice: Offers free, impartial advice on legal issues.
2. Law Centres: Provide free legal advice in their local areas.
3. Free Representation Unit: Offers pro bono legal representation in certain tribunals.
4. Bar Pro Bono Unit: Provides free legal assistance from barristers.
5. LawWorks: Connects people with pro bono solicitors.

Costs in Other UK Jurisdictions

While this guide focuses on England and Wales, it’s important to note that costs rules can differ in Scotland and Northern Ireland. For example, Scotland uses a unique system of “expenses” rather than costs and has different thresholds for small claims. Always check the specific rules for your jurisdiction.

Summary of Key Points

• Small Claims: Parties typically bear their own costs, but courts can order cost payments for unreasonable behaviour.
• Fast-Track Claims: Fixed Recoverable Costs (FRC) apply, with specific rules for cases before 1 October 2023.
• Personal Injury Claims: QOCS offers protection against paying the defendant’s costs, with certain exceptions.
• Managing Costs: Effective cost management involves planning, record-keeping, and considering fixed fees and settlement offers.

Understanding legal costs is crucial for Litigants in Person navigating the UK court system. By being aware of the potential costs and following best practices for managing them, you can make more informed decisions about your case.

As explored in our previous article, “The Psychological Toll of Legal Battles: A Litigant in Person’s Journey”, the stress of legal proceedings can be significant. Understanding the financial aspects can help alleviate some of this burden.

Remember, while this guide provides general information, laws may vary and change over time. Always consult a qualified legal professional for advice specific to your situation.

Have you had experience as a Litigant in Person in the UK? Share your story in the comments below to help others learn from your journey.

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References:

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Publisher Interest Disclosure

The author has no financial or personal affiliations that could be perceived as a conflict of interest in the content of this article. The information provided is based on extensive research from reliable sources, aimed at helping Litigants in Person (LiPs) navigate the UK legal system. The content is intended to be educational and informative, with no endorsements or affiliations to any specific legal service providers, firms, or organisations mentioned within the article.’

Disclaimer

This article is for general informational purposes only and does not constitute legal advice. While every effort has been made to ensure the accuracy of the information provided, laws and regulations may change over time, and the specifics of any legal case can vary. Readers are advised to consult a qualified legal professional for advice tailored to their individual circumstances. The author and publisher disclaim any liability for any losses or damages incurred as a result of reliance on the information provided in this article.