There are two distinct sets of costs to think about in litigation. There are the legal costs, and there are the costs of clients' time and potential damage.
All of these costs can be exacerbated by by parties and their advisers dragging proceedings out for years. Procedural judges now have several sticks with which to beat litigants and their lawyers ranging from slapping extra costs on to someone's bill, to throwing out the entire case.
Litigants who don't comply could face significant costs consequences. In making an order for costs, the court can look at the conduct of the parties before as well during the proceedings.
If one party fails to accept a realistic offer to settle, or if they refuse to go to mediation without a good reason, sanctions are likely to be applied which may mean the case being struck out.
And clients who lie and get caught lying may well end up in prison for contempt of court.
For further information please contact Mike Henley, e-mail: Click Contact Link , Tel: + 44 113 284 7000
This article was first published in a special supplement to the March 1999 Hammond Suddards Commercial Dispute Resolution Newsletter
The information and opinions contained in this article are provided by Hammond Suddards. They should not be applied to any particular set of facts without appropriate legal or other professional advice.
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