The Real Cost of Going to Court

Before you commit time and money to court proceedings, it helps to understand how the process actually works. Our free Small Claims Guide walks through the steps.

People often assume that winning in court means getting everything back: the money they were owed, the fees they paid, and the cost of getting advice. In practice it rarely works that way, and the gap between what you spend and what you recover can be wider than expected.

Before you start legal action, ask yourself two questions. What will this cost me to run? And if I win, is there any realistic chance of actually getting paid?

Can the other side pay?

A judgment is only as good as your ability to enforce it. If the defendant has no money, no job and no assets, a court order saying they owe you £5,000 is not going to produce £5,000. You can spend more chasing the debt through bailiffs, attachment of earnings or a charging order, and still end up empty handed.

A few basic checks are worth doing before you start:

• The Individual Insolvency Register on GOV.UK will show if someone is bankrupt or subject to an insolvency arrangement.
• The Registry Trust at www.registry-trust.org.uk keeps records of County Court Judgments in England and Wales. A person already carrying several unpaid CCJs is unlikely to be a good prospect.
• For a business, a quick look at Companies House will show whether it is still trading, in liquidation or heading that way.

None of this is foolproof, but it gives you a sense of whether throwing more money at the problem is likely to be worthwhile.

If you do get a judgment and the other side refuses to pay, there are several enforcement options. The county court bailiff can try to seize goods, or you can transfer the debt to the High Court for enforcement by a High Court Enforcement Officer, which is often quicker for sums over £600. You can also apply for an attachment of earnings if the debtor is employed, a third party debt order against money in their bank account, or a charging order against property they own. Each step has its own fee, and none of them work if there is nothing to take.

Small Claims Guide

Thinking of making a small claim or defending one? Describe your situation and get a step-by-step guide to the process, costs, and what to expect.

Try our Small Claims Guide free, here on this site →

Small claims

The small claims track deals with most disputes up to £10,000. For personal injury claims the position changed in 2021: the small claims limit is now £5,000 for the injury element in road traffic cases, and £1,500 in other personal injury cases. The rules in this area have moved around, so check the current position before you rely on these figures.

In small claims, you usually can't claim back solicitors' costs, even if you win. You can instruct a solicitor if you want to, but you will be paying the bill out of your own pocket, and those fees can easily exceed whatever the court orders the other side to pay you. Most people handle small claims themselves. If you want help, Citizens Advice, your local Law Centre and many free online resources can talk you through the process.

Some costs do have to be paid upfront, and you only get them back if you win. If you lose, that money is gone on top of whatever else you were trying to recover.

• Court fees. There is a fee to issue the claim, another if it goes to a hearing, and further fees for enforcement. The amount depends on the value of the claim. For current figures, search the HM Courts and Tribunals Service pages on GOV.UK. You may qualify for help with fees (a reduction or full remission) if you are on a low income or claim certain benefits. The criteria change, so check the current position before you apply.
• Expert evidence. Some cases need a report from an expert, such as a medical report in a personal injury claim or a surveyor's report in a property dispute. On the small claims track the amount recoverable for an expert's fees is capped by the court rules, so even a successful claimant usually cannot get back the full cost of a detailed report.
• Loss of earnings and travel for attending the hearing can be recovered within limits set by the rules.

Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.

Larger claims

If the claim is above the small claims limit, it will usually be allocated to the fast track, intermediate track or multi-track, depending on value and complexity. On these tracks, the winner can normally recover reasonable legal costs from the loser.

"Reasonable" is the word that causes most of the trouble. The losing side, or their solicitors, will often challenge the bill line by line. It is common for the amount actually paid to be lower than the amount your solicitor has charged you. If there is a shortfall, your solicitor may look to you for the difference, unless you have agreed otherwise at the outset.

You also have the right to challenge your own solicitor's bill if you think it is too high. Ask to see the correspondence with the other side about why they are refusing to pay the full amount. The same arguments, such as duplication of work or excessive time spent on a task, may apply to what your own solicitor is charging you.

Legal aid is worth a quick mention. It is no longer available for most civil money claims, but it can still apply in some areas such as certain housing, family and discrimination cases, and for people on very low incomes. The Civil Legal Advice service on GOV.UK has a checker that will tell you quickly whether your case might qualify.

"No win, no fee" agreements

A conditional fee agreement, usually called a "no win, no fee" deal, means you do not pay your solicitor's fees if you lose. They are most common in personal injury work, but they are also used in housing disrepair claims, professional negligence, some commercial disputes and employment cases. It sounds straightforward, but there are several things to watch for.

1. You may still have to pay disbursements up front, including court fees, medical records, search fees and expert reports. These are normally recoverable if you win, but you are out of pocket in the meantime. Some solicitors arrange insurance or funding to cover them.
2. If the costs recovered from the other side are less than your solicitor's total bill, you may have to make up the shortfall.
3. Most no win, no fee agreements include a success fee. This is an extra percentage added to the solicitor's normal charges if the case succeeds. For personal injury claims, the success fee is capped at 25% of the damages (excluding damages for future care and loss), and it is not recoverable from the other side. For other types of claim the cap can be higher. Read the agreement carefully and ask what the success fee means in pounds and pence before you sign.
4. Be careful with Part 36 offers. If the defendant makes a formal settlement offer and you refuse it, then win at trial but do not beat the offer, you can end up paying a chunk of the defendant's costs from the date the offer expired. This can wipe out a large part of what you have won. Take proper advice before rejecting any Part 36 offer.

Court is sometimes the right answer, especially where the sum involved is significant and the other side has the means to pay. For smaller disputes, or where the defendant's finances are shaky, the realistic outcome may be a lot less attractive than the headline value of the claim. Working out the likely costs, the chances of enforcement and the time it will take is usually a better use of an afternoon than regretting it six months in.

The Next Step

Now that you have read through the advice above, you might want to put it into practice. Our Small Claims Guide lets you thinking of making a small claim or defending one? Describe your situation and get a step-by-step guide to the process, costs, and what to expect. Try it now →