Sector · Commercial litigation
Costs advice and advocacy for commercial litigation, from contract and shareholder disputes to Business and Property Courts claims with substantial budgets and indemnity costs arguments.
Qualified Costs Lawyers, regulated by the Costs Lawyers Standards Board (CLSB), supported by experienced Costs Draftsmen.
In commercial litigation, legal costs can be a decisive commercial factor. Budgets, security for costs, interim payments on account, Part 36 and Calderbank offers, and the choice between standard and indemnity costs all influence settlement. We support solicitors and in-house teams with costs strategy, budgets and recovery, and we bring a commercial, evidence-led approach to costs disputes.
Complex matters
Large commercial claims may involve multiple parties, extensive electronic disclosure, foreign law or forensic accounting experts and teams of solicitors and counsel. Costs management applies to many multi-track claims below £10 million unless the court orders otherwise, while larger claims may still be managed. We help shape realistic budgets, analyse an opponent’s spend and present or challenge Bills where several workstreams and fee earners overlap.
Costs decisions in commercial cases begin early. An application for security for costs, the funding arrangements in place and the likely recoverability of particular work all influence how a claim is run and whether it settles.
We provide practical input on likely recoverable costs, the effect of offers and the risks of indemnity costs orders, helping teams make informed decisions rather than discovering the costs position at the end.
Commercial budgets must reflect document-heavy disclosure, witness evidence from several individuals and expert accountancy or valuation evidence. Assumptions should be clear enough that later developments can be distinguished from overspending.
We prepare and review Precedent H budgets, help negotiate budget discussion reports and advise on revisions. Where costs management does not apply, we can still help produce realistic estimates for the client and court.
Under CPR 44.2(8), where a party is ordered to pay costs subject to detailed assessment, the court will normally order a reasonable sum on account unless there is good reason not to. A well-evidenced estimate improves the prospects of a substantial payment.
Indemnity costs, whether following a Part 36 outcome or conduct, change the basis of assessment and remove the proportionality test. We help teams present or resist those arguments and understand what difference they make in practice.
Commercial Bills need to show the work across each phase and explain the role of each fee earner and counsel. Guideline Hourly Rates are a starting point, and higher rates may be argued where the complexity and value justify them.
When acting for paying parties, we focus challenges on duplication, excessive partner time, disclosure costs and work not attributable to the issues won. If needed, we can represent clients at detailed assessment hearings.
Third-party litigation funding, after-the-event insurance and hybrid retainers are increasingly common in commercial disputes. Funding costs are not generally recoverable from an opponent, so the gap between spend and likely recovery should be understood early.
We help clients value Calderbank and Part 36 offers, consider the costs of the assessment itself and settle costs on terms that reflect a realistic view of what the court would allow.
Frequently asked questions
Costs management applies to many multi-track claims below £10 million unless the court orders otherwise, and the court can order budgets in larger claims. Check the current CPR and the directions given.
On the indemnity basis, doubts are resolved in favour of the receiving party and the proportionality test does not apply. On the standard basis, costs must be reasonable and proportionate.
Yes. We can prepare or review the costs estimate supporting or opposing an application for security for costs.
Yes. We can advise on disputes about a solicitor’s own bill, including assessment under the Solicitors Act 1974.
This page provides general information, not advice on a specific case. Rules and figures change, so check the current position for your matter. Contact our team to discuss it.
Rules and further reading
Other sectors: Personal injury, Clinical negligence, Housing disrepair, Industrial disease, Court of Protection, Professional negligence, Employment tribunal.
Discuss a matter