This is the process of recovering money or property from a debtor when they have failed to pay back the debt within a time that was previously arranged.
Example cases
A simple case
We represented a client who was owed around £5000 by a company that had failed to pay her. We sent a warning letter but the company still did not respond. If we had pursued the company for her, she would have had to pay our fees. Instead, as the claim was under £10,000, we directed her to the small claims procedure which she can do herself by following an online or paper based procedure. She paid us for opening her file, taking her instructions and writing the warning letter- a cost of £345 + VAT of £69 = £414. She still has to pay the court fee but she avoids any other legal costs.
A complex case
We were asked to recover the sum of £20,000.00 for a company whose client had refused to pay. We issued proceedings and the claim was defended. Evidence was called by both sides. We won the case and the defendant was ordered to pay our client but he did not do this. We returned to court to enforce the judgment. . This involved the bailiff turning up at his house for the money and at this point, the homeowner arranged payment of all the fees (now escalated because of the enforcement action and bailiff fees).
Our fees amounted to £12,738 plus VAT of £2547 = £15,285 and the court fees of £1000 to issue the proceedings and £545 for the hearing fee. Their costs totalled £16,830.
Steps in the case
Additional Payments / Costs
|
|
Cost |
VAT |
Total |
|
Fast Track Hearing Fee |
£545 |
No VAT |
£545 |
|
Multi Track Hearing Fee |
£1175 |
No VAT |
£1175 |
|
Court Fee for Money Claims up to £300 |
£35 |
No VAT |
£35 |
|
Court Fee for Money Claims £301-£500 |
£50 |
No VAT |
£50 |
|
Court Fee for Money Claims £501-£1000 |
£70 |
No VAT |
£70 |
|
Court Fee for Money Claims £1001-£1500 |
£80 |
No VAT |
£80 |
|
Court Fee for Money Claims £1501-£3000 |
£115 |
No VAT |
£115 |
|
Court Fee for Money Claims £3001-£5000 |
£205 |
No VAT |
£205 |
|
Court Fee for Money Claims £5001-£10,000 |
£455 |
No VAT |
£455 |
|
Court Fee for Money Claims £10,001-£200,000 |
5% of the claim value |
No VAT |
5% of the claim value |
|
Expert advice and instruction |
£1000 |
£200 |
£1,200 |
|
Process Server |
£50 - £250 |
£10 - £50 |
£60 - £300 |
The court has introduced a new “intermediate” hearing track with fixed costs, please contact us for more information or click here.
If your case requires court enforcement, the fee will vary depending on the value of your claim and which court the matter involves.
Factors that can increase your costs
The attitude of the other party will have a significant impact on the fees payable as it can cause delay, likewise if either side fail to negotiate. If instructions or paperwork are requested and not given promptly then this will increase the fees for the case.
The firm’s charges are calculated mainly by reference to the amount of time that is spent on a matter. The Firm’s rates are reviewed annually and we shall inform you promptly of any change. Ordinary letters out and telephone calls are charged at six minute units where the time spent does not exceed this.
The hourly rates and unit charges for members of the Civil Litigation Department are:
|
Shaun Underhill Partner, Head Civil Litigation |
£345 per hour + VAT (£69) – total of £414 |
£34.50 per unit + VAT of £6.90 = £41.40 |
|
Veronika Kiss Paralegal |
£160 per hour + VAT (£32) – total of £192 |
£16 per unit + VAT of £3.20 = £19.20 |
|
Jade Hughes Civil Secretary |
£100 per hour + VAT (£20) – total of £120 |
£10 per unit + VAT of £2 = £12.00 |
VAT: please note that all the above will be charged to you with the addition of VAT at the current rate (to meet HMRC re-charge requirements)
Where a matter is dealt with by a legal secretary or non-fee earner to progress it a charge of £100.00 per hour will be made.
These rates reflect the many overheads which, of necessity, a firm of solicitors must incur to run its business.
Fixed Fees
For some new matters, we offer a fixed fee of £200+VAT for up to 1 hour of general legal advice. If you would like to find out more, please contact us and we will provide more detailed information.
