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Costs relating to claims to recover unpaid invoices debt recovery

Possible costs

The costs set out below apply to a claim for breach of contract relating to the recovery of unpaid invoices. It is not possible to give a general indication of costs in all cases, as they will largely turn on their own facts and circumstances. However, all such claims will follow an initial fixed fee structure if they are uncontested. Variable costs based on the fee earner’s hourly rate and the amount of time spent on the matter would apply if the claim is defended, and would take effect from the point that the Defence is filed. We would expect a claim, assuming that it proceeded to a final hearing, to cost within the following ranges:

Value of Claim Fixed Fee Default Judgment Variable Fees After Defence Filed
Lower Cost Upper Cost
Up to £500 £150 £2,100 £7,850
More than £500 but less than £1,000 £150
More than £1,000 but less than £5,000 £200
More than £5,000 but less than £10,000 £250
More than £10,000 but less than £25,000 £250 £6,000 £16,500
More than £25,000 but less than £100,000 £250 £8,500 £40,500
More than £100,000 but less than £250,000 Variable Variable

Court fee

The following Court Fees are payable when your claim is issued:

Value of your Claim Fees Payable
Court Issued Claim Via Money Claims Online
Up to £300 but no more than £500 £35 £25
Greater than £500 but no more than £1,000 £50 £32
Greater than £1,000 but no more than £1,500 £70 £60
Greater than £1,500 but no more than £3,000 £80 £70
Greater than £3,000 but no more than £5,000 £115 £105
Greater than £5,000 but no more than £10,000 £205 £185
Greater than £10,000 but no more than £15,000 £455 £410
Greater than £15,000 but no more than £50,000 5% of the value of the claim 4.5% of the value of the claim
Greater than £50,000 but no more than £100,000
Greater than £100,000 but no more than £150,000 n/a
Greater than £150,000 but no more than £200,000 n/a
Greater than £200,000 £10,0000 n/a

Basis for our variable fees

Our Fees are calculated and charged on an hourly rate basis, and based on the time spent on your file by our solicitors and fee earners. Whilst full details of the solicitor who will have control of your matter will be provided in our client care letter, the following table sets out the details of those who may work on or otherwise supervise your file.

Role Qualification Experience Hourly Rate (Excluding VAT)
Director Solicitor/ Fellow of the Institute of Legal Executives 12+ years Post Qualification Experience £285
Associate Director Solicitor/ Fellow of the Institute of Legal Executives 8-10+ years Post Qualification Experience £250
Senior Associate Solicitor/ Fellow of the Institute of Legal Executives 6-10+ years Post Qualification Experience £240
Associate Solicitor/Fellow of the Institute of Legal Executives 3-6 years Post Qualification Experience £210
Solicitor/Legal Executive Solicitor/ Fellow of the Institute of Legal Executives 0-3 years Post Qualification experience £200
Trainee Solicitor Has completed LPC and working towards qualification No Post Qualification experience, but may have experience of working within the legal processes and procedures £135
Paralegal Not formal professional qualification, No Post Qualification experience, but may have experience of working within the legal processes and procedures £135

Disbursements

During the running of any claim we anticipate that the following disbursements may be required:

Disbursement Lower cost >Upper Cost
Counsel’s Brief fee for interim or application hearing £400 £5,000
Counsel’s Final Hearing Fee £750 £45,000

 

Counsel’s Fee for Advice, whether written or in Conference £500 £6,000
Solicitor’s Travel and accommodation £10 £500
Expert Reports (where applicable) £250 £20,000

What’s included?

The following work is carried out as part of the fixed fee element of the claim. However, if a Defence is filed the matter would proceed on a variable rate basis, and we will provide you with a more accurate fee estimate at that point:

FIXED FEE – DEFAULT JUDGMENT
Work Included Time Scale for Completion.
Preparing Letter of Claim 7 Days from date of instruction
Drafting and Filing Claim Form and Particulars of Claim Within 2 months from the date of instruction
Request Default Judgment Not more than 30 days after Issue of proceedings

Value Added Tax (“VAT”)

All of our fees and Disbursements set out on this page are exclusive of VAT, which is chargeable at the rate of 20%. Where our client is VAT registered they will be able to reclaim the VAT from HMRC in the normal manner.

Meet the team

The Dispute team has five members, each of whom practices their own specialisms. This enables us to provide advice and assistance across a wide range of civil and commercial matters, from landlord and tenant issues, to high value shareholder disputes.

The team is headed by Martin de Ridder, a Director with over 15 years’ experience in dispute resolution, and all matters fall under his supervision. Further information about all team members and their areas of expertise can be found here.

 

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