Somebody owes me money and they won’t pay - what should I do?

If somebody should be paying you money and they won’t pay up, we can help. Sometimes a carefully worded letter, setting out the legal basis of your claim, will be enough to persuade them; if not, then a formal letter of claim should prompt them to take it more seriously.

A claim is the final sanction – and, even then, the other side may agree to pay before the case actually gets to court.

I’ve got a problem with somebody, but it isn’t about money. What are my options?

The range of issues that end up as the subject of legal disputes is almost infinite. For most businesses, debts and breach of contract are the most common. However, it might also be about infringements of patent, copyright or trademark, breaches of competition law, or a landlord-tenant dispute.

What your options are will depend on the nature of the dispute, the attitude of the other party and whether you’re claiming or defending. A defendant always has fewer options than a claimant, and an inflexible adversary will make it significantly harder to reach an agreement.

The trick is to resolve the problem as quickly as possible, so that it doesn’t have to involve a Court. Once we have all the relevant information, we can set out your options and help you decide which is the most advantageous.

High Court, County Court – what’s the difference?

Generally, claims below a certain level, which are not especially complex, and don’t fall into one of certain specialist categories, will be heard in the County Court. The rest will be heard in the High Court.

For the parties, the most important difference is cost. A High Court claim can be almost twice as expensive by comparison to a County Court claim.

How much will it cost?

It’s, literally, impossible to answer this question until we know the facts. If the matter can’t be dealt with by a polite exchange of correspondence, it might go all the way to a High Court hearing and beyond. Usually, it will be somewhere between the two.

Every case is different and the cost will depend on the amount of time involved – which, in turn, will depend on the complexity of the case, the number of documents, the number of witnesses, the need for expert evidence and so on. Once we know the facts of the case, we can give you an idea of the likely cost – which may well influence your decision about whether to proceed.

Nearly all trials involve the losing party paying around 60% of the winning party’s costs - good news if you win, but doubly painful if you lose.

Once a claim has been issued, bringing everything to a halt will usually mean paying some or all of the other side’s costs. This is why the decision to issue or defend a claim should always be considered carefully at the outset.

The earlier a case settles, the less it will cost – which is why we always seek to find a resolution as quickly as possible and without going to Court.

What about litigation insurance?

‘After the event’ insurance may be available, depending on the nature of the dispute. However, you should bear two things in mind:

1. There’s usually a substantial excess to be paid, win or lose.
2. There’s also likely to be a hefty premium.

How long will it take?

This depends on a lot of factors. Mostly, it depends on the other party: how they respond and how quickly. Some of the disputes we’ve handled have been resolved in two or three days, but you should expect it to take a lot longer. Generally, if you want really quick results, it will mean either a big compromise or a big bill.

If it goes all the way to a full trial, it will certainly take many weeks, possibly months or years.

I don’t have any evidence – does that mean I don’t have a case?

Not necessarily. It’s always easier to prove that an agreement existed – and, just as important, what was agreed – if the details are written down. But that doesn’t mean you can’t get an agreement enforced without written evidence. Verbal agreements are still binding and, every day, judges all over the country decide the facts of a case, based on what two people remember about a conversation 12 months ago.

What is a ‘small claim’?

If a claim is for money, and the sum claimed is less than £5,000, this automatically qualifies as a small claim; a larger claim will have to be pursued in a higher court. The most significant feature of a small claim is that, generally, neither party can recover their costs, regardless of who wins.

This means that, for many businesses, the decision about whether to contest a dispute over an amount below £5,000 really comes down to one question: will it be cheaper to admit the claim (or to absorb the loss) rather than pay all the legal fees to get it to trial?

Many businesses would sooner concentrate on where the next £50,000 is coming from rather than put a lot of time and effort – and a fair bit of money – into a small claim.

Why should I pay for a lawyer?

Pursuing a legal claim on your own can be tricky and intimidating. Professional help is always useful - and often essential. Without it, you could end up losing money, creating unnecessary stress for yourself and playing into the hands of the other party.

However, if you’re concerned about the potential cost of using a solicitor, there are often ways to keep the cost down without compromising your case.

If you’re worried about cost, just talk to us – we can advise you about your options.

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