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Litigation calendar    Sep 02, 2020

The cost of going to court

Most people thinking about going to court will be aware of the cost of paying their solicitors, but there are other non-monetary ‘costs’ that should be taken into account.

Except for the most extreme circumstances, going to court should be considered a ‘last resort’ and only to be used when all other options have been exhausted.

Non-Monetary Costs

Most people thinking about going to court will be aware of the cost of paying their solicitors, but there are other non-monetary ‘costs’ that should be taken into account, such as:

  • Time: the cost of your time spent meeting with lawyers, sifting through evidence, corresponding back and forth, and finally going to court for the ‘big day’.
  • Certainty: while you might think that going to court is the best way to get a ‘final’ answer to your legal problems, this is actually untrue. The best way to have control over the outcome in a dispute is to try to settle with the other party, since you will be able to negotiate and know the final outcome with certainty. On the other hand, when you go to court you give the decision-making power to the judge, and there is always the chance that they will not rule in your favour.
  • Emotion: perhaps due to this uncertainty, going to court can cause lots of stress on the parties involved. Often, relationships have broken down with the other side and there may be feelings of hurt and grief, or even anger.

Solicitor Costs

In addition to the above non-monetary costs, there is the cost of paying for lawyers to represent you in court. In most cases, lawyers will have an hourly rate, which often lies between $300-$500 per hour depending on the experience and seniority of the solicitor. You lawyer will record all of the time that they spend on your court case (usually in 6 minute increments) and will base the bill of time spent.

However, your final bill will not just be the time that the lawyer spends in the courtroom. Your lawyer will also charge you for time spent:

  • meeting and corresponding with you;
  • writing letters and emails;
  • preparing court documents;
  • drafting evidence;
  • corresponding with any barristers or experts that have been appointed;
  • conducting specialised legal research; and
  • preparing for the court case.

Other ‘Hidden’ Costs

In addition to your lawyers costs, there are other costs that you should be aware of before deciding to go to court, including:

  • Barrister Fees: your lawyers will often instruct a barrister to appear at court. While the lawyers are experts at preparing all of the necessary court documents and evidence, barristers specialise in making those arguments before a judge. Barristers will usually have both an hourly rate and a day rate, and this can start at $500 per hour or $5,000 per day, and rise quickly, depending on the experience of the particular barrister.
  • Court Fees: filing court documents and booking court rooms all comes with a cost, and this cost can quickly add up over the course of a long court dispute.
  • Expert Fees: in some matters, particularly those involving technical details, it may become necessary to pay an ‘expert’ to prepare a report on the matter in dispute.
  • The Other Side’s Legal Fees: if you do decide to go to court, and get a judgment made against you, the other side may apply to the court to have you pay their legal costs. Then you would have to pay not only one set of lawyers, but two!

Other Options Besides Going to Court

As seen above, going to court can be an expensive, time-consuming and stressful process, with no guarantee regarding the outcome.

At Frank Law, we work with our clients to explore other alternative dispute resolution (ADR) methods before resorting to commencing court proceedings. We work with clients to understand the true costs behind their court matter, and then propose other arrangements such as mediation and settlement negotiations.

If you are involved in a dispute and need advice on how to proceed, don’t hesitate to us at frank@franklaw.com.au.

This is not legal advice.

frank law-16

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