Irrespective of the monetary value associated with a claim, prior to commencing legal proceedings, it is incumbent upon the party bringing the claim to adhere to court rules mandating the dispatch of a formal “letter of claim.” This communication must comprehensively elucidate the particulars of the claim and afford the debtor a prescribed period, typically around 30 days, to respond. It is worth noting that a substantial proportion of cases are resolved at this pre-action stage, prior to the initiation of formal litigation.
In order to craft a letter of claim with precision, a thorough analysis of the case is imperative. This entails a meticulous examination of documentary evidence and consideration of potential witnesses. The gathering of such information is essential to construct a robust and well-founded claim.
Regarding the matter of costs, we are prepared to provide a precise estimation upon receipt of the requisite documentation and subsequent initial consultations with you. Additionally, we are open to the prospect of negotiating fixed fees for the preparation of the letter of claim, and these arrangements will be discussed on a case-by-case basis.
Karam,
Missick &
Traube
We pride ourselves on the quality of our advice, delivered by lawyers from diverse, multicultural backgrounds who are fully committed to providing the highest level of service to our clients.
- Commencing Legal Claim
Commencing legal claims entails a systematic procedure:
Claims are initiated by submitting a claim form that includes the names of the parties involved, a description of the claim, and its monetary value. A requisite court fee must be paid, the amount of which depends on the claim's value, as outlined in the 'Court costs and structure' section. Following the issuance of the claim form, the claimant must serve it on the defendant within four months if the defendant is within the jurisdiction or within six months if the defendant is located outside the jurisdiction.
The claimant is also responsible for preparing particulars of claim, which outline the case's details and the facts upon which it relies. Within the jurisdiction, various methods, including postal and personal service, can be used to serve the claim form.
After being served with the particulars of claim, the defendant has 14 days to either file an acknowledgement of service or a defence. If an acknowledgment of service form is filed, the defendant has an additional 28 days, starting from the date of service of the particulars of claim, to file a defence. If the defendant opts not to file an acknowledgment of service form, a defence must be served within 14 days of receiving the particulars of claim.
Failure by the defendant to file an acknowledgment of service form or a defence within the stipulated timeframes typically allows the claimant to apply for judgment in default. The claimant may also serve a reply in response to the defence within 28 days of receiving a directions questionnaire from the court. If the defence includes a counterclaim, the claimant is obligated to serve a defence to the counterclaim, often included with the reply, within 14 days of receiving the defence and counterclaim.
The subsequent stages of litigation, referred to as "directions," are determined at a case management conference hearing. For multi-track cases, usually those exceeding £25,000 in value, directions generally encompass the following: Disclosure of documents, usually around 1-2 months after the pleadings (particulars of claim, defence, counterclaim, reply, etc.) are completed. Exchange of witness statements, typically about 1 month after disclosure. Exchange of experts' reports, usually around 1 month after witness evidence. A pre-trial review hearing, scheduled 1-2 months before the trial. The trial itself, scheduled within 9-18 months after the claim is initiated.
For fast track cases, the directions are generally a condensed version of multi-track directions, and trials are typically listed within approximately 6-9 months from the claim's initiation. In small claims track cases, trials are often listed around 4 months after the claim is initiated, with evidence exchanged approximately one month prior to the trial.
- Our Capabilities
Court Costs And Structure:
In the event that the commencement of a legal claim in court becomes requisite, a fee is levied, and this fee is contingent upon the claim’s monetary value. Presented below is a table provided by Her Majesty’s Courts and Tribunals Service, outlining the applicable court fees when initiating a claim in court. It is often feasible to utilize one of the court’s online portals, specifically Money Claim Online (MCOL) or County Court Business Centre (CCBC), for the submission of claims.
Counsel’s Fees:
When initiating legal proceedings, expect at least one court hearing, potentially more. Legal representation by an advocate is necessary, and we'll handle instructing a barrister for you. Barristers are crucial in representing your interests and assisting with claim preparation. We'll negotiate and confirm barrister fees on your behalf. Barrister costs vary based on expertise, hearing duration, and preparation involved, generally constituting about one-third of total legal expenses. For instance, in a £100,000 debt claim trial, estimated counsel fees range from £15,000 to £30,000, plus 20% VAT, influenced by the barrister's seniority and experience.
Other Disbursements
It is sometimes necessary to incur other third party costs during debt recovery litigation. Such costs could include:
1. Land Registry Search Fees: Charges associated with conducting inquiries within the Land Registry database to ascertain property ownership or any existing encumbrances.
2. Process Server Fees: Expenses incurred for the engagement of a process server, responsible for delivering legal documents, including court papers, to the pertinent parties involved in the case.
Disputed Debt Recovery
If disputes or enforcement measures arise during debt recovery or in the presence of an unpaid judgment, we'll discuss potential fee adjustments through detailed consultations, aiming for a mutually agreeable plan. In contested cases, we'll assess the defense's merits, providing a comprehensive cost breakdown based on hourly rates. All billable work will adhere to established hourly rates.
Hearing Fees:
Where a matter is disputed and listed for a hearing, there will be a hearing fee. Small Claim Track fees based on the claimed amount:
- Claims up to £300: £25
- Claims £300.01 to £500: £55
- Claims £500.01 to £1,000: £80
- Claims £1,000.01 to £1,500: £115
- Claims £1,500.01 to £3,000: £170
- Claims more than £3,000: £335
- Fast track claims (over £10,000): £545
- Multi-track claims (over £25,000): £1,090
Time Scales
Debt recovery timelines do not adhere to a set standard. However, for the purpose of providing a general indication, a customary debt recovery demand letter typically outlines a response timeframe of 7 days when dealing with corporate debtors and 30 days when addressing individual debtors.
Exclusions
Our fees are fixed and inclusive of the elements specified earlier. Nevertheless, certain factors may typically result in an augmentation of these costs. In such cases, we will ensure prompt communication and provide you with a transparent estimate of these supplementary expenses. Factors that might contribute to an increase in costs comprise: • Any work conducted between the conclusion of a demand letter and the initiation of court proceedings, such as telephone follow-ups and updates to you. • Enforcement proceedings, including the engagement of a Bailiff. • When the matter surpasses £10,000 in value, thereby exceeding the limits of the small claims track.
Key Stages
Claims are commenced by issuing a claim form.
Claims are commenced by issuing a claim form, which contains the names of the parties, details of the claim and its value. A court fee must be paid depending on the value of the claim as set out in the ‘Court costs and structure’ drop down. Once the claim form has been issued, the claimant must serve it on the defendant within four months if the defendant is within the jurisdiction or within six months if the defendant is outside the jurisdiction.
The claimant must also prepare particulars of claim.
The claimant must also prepare particulars of claim, which set out the case and the facts relied on. The claim form can be served within the jurisdiction by various methods, including post and personal service.
Once the defendant has been served with the particulars of claim, it has 14 days to file an acknowledgement of service or a defence.
Once the defendant has been served with the particulars of claim, it has 14 days to file an acknowledgement of service or a defence. If the defendant files an acknowledgment of service form, it has 28 days from the date of service of the particulars of claim to file a defence. If the defendant does not file an acknowledgment of service form, it must serve a defence within 14 days of receipt of the particulars of claim.
If the defendant does not file an acknowledgment of service form or a defence within the prescribed time-frames, in most cases the claimant can apply for judgment in default.
If the defendant does not file an acknowledgment of service form or a defence within the prescribed time-frames, in most cases the claimant can apply for judgment in default. The claimant can serve a reply in response to the defence within 28 days of receipt of a directions questionnaire from the court. If the defence contains a counterclaim, the claimant must serve a defence to counterclaim, which is often served with a reply, within 14 days of service of the defence and counterclaim.
The timetable for the subsequent stages of the litigation process, known as “directions”, will be determined at a hearing known as a case management conference.
The timetable for the subsequent stages of the litigation process, known as “directions”, will be determined at a hearing known as a case management conference. Directions for multi-track cases (usually those worth over £25,000) will usually include most or all of the following: Disclosure of documents – usually around 1-2 months after the pleadings (particulars of claim, defence, counterclaim, reply etc.) are closed Exchange of witness statements – usually around 1 month after disclosure Exchange of experts’ reports – around 1 month after witness evidence A pre-trial review hearing – 1-2 months before trial Trial – within 9-18 months after the claim is issued.
The directions for fast track cases will be a shorted version of the multitrack directions and trials are usually listed within around 6-9 months from when the claim is issued.
The directions for fast track cases will be a shorted version of the multitrack directions and trials are usually listed within around 6-9 months from when the claim is issued. The directions for small claims track cases usually involve listing a trial around 4 months after the claim is issued with the evidence exchanged around a month before trial.
The court generally plays an active role in managing the proceedings and the directions given at the case management conference (even if the directions are agreed between the parties).
