Liability for legal fees in small claims

[bruncher]

I have a claim ongoing for less than £10,000

The other side has made an offer, which is about half of what I am claiming. They have given me very tight deadline for acceptance. They say that if I do not accept and do no better in a court settlement than their offer, I could have to pay their costs.

"This offer is made without prejudice save as to costs. This means that should this case proceed to court and you fail to recover in excess of the offer made in this letter, you could be responsible for our costs in defending this matter and attending trial from the date that this offer remains open for acceptance."

Is this correct?

They seem to have left out various stages such as mediation, which I have been pressing for but which they have consistently refused.

[newlyretired]

Well as nobody else has answered, my understanding is that you are not liable for the other side's costs with small claims...

...but IANAL !

newlyretired

[Clitheroekid]

Firstly, I assume that the case has been allocated to the small claims track, and also that the Defendant has solicitors acting for him. If he doesn't then for all practical purposes you're not at risk on costs anyway.

If so, then you can only become liable to pay the other side's costs if the judge at the hearing decides that you have behaved unreasonably - CPR 27.14(2)(g) if you want chapter and verse - https://www.justice.gov.uk/courts/proce ... rt27#27.14

The test for behaving unreasonably is quite a high one. Merely turning down an offer and then being awarded less at the hearing than the amount offered would not normally be considered anywhere near enough to justify a costs award.

The wording used is standard in disputes where costs are at large, namely any cases outside the small claims track. Such threats are often used by lawyers against unrepresented litigants in the hope of scaring them into agreeing an unfavourable settlement.

Incidentally, you don't say what the claim is for, but if it's pursuant to some form of written contract you may be able to recover your own legal costs if the contract provides for that, in which case it may be worth employing solicitors to deal with it.

[bruncher]

Many thanks for this response.

Firstly, I assume that the case has been allocated to the small claims track, and also that the Defendant has solicitors acting for him. If he doesn't then for all practical purposes you're not at risk on costs anyway.

I assumed that this is a 'small claim', but how can I be sure if it is not determined by the amount of money at issue. I have logged in to my 'Money claims account' but the word 'small' is not there.

I am sure the defendant has solicitors acting for them, and it is likely they are trying to scare me.

The matter I am dealing with has been aired extensively here
viewtopic.php?t=17051

I did have a solicitor assigned by my Home insurer, but I thought they did a very poor job.

A solicitor who I have known for 20+ years and has done a lot of work for me and my family was going to help, but he has been very ill so I have decided it couldn't wait and have myself initiated things in December. He was able to steer me a little and comment on the very helpful expert witness report that I commissioned.

[bruncher]

All over. They made an offer, I pushed the amount up a bit. Not what we should have got, but it's something and without the risk of trial.