You may well have thought that the ‘Wagatha Christie’ case was closed, but Coleen Rooney and Rebekah Vardy have been back to the High Court to battle it out for another round.
At the end of their 2022 libel trial, the judge had ordered Mrs Vardy to pay 90% of Mrs Rooney’s costs. Up to this point the legal bill has risen to £1,833,907. Jamie Carpenter KC, representing Mrs Vardy, said that Mrs Rooney’s total was over three times the agreed costs budget (£540,779), claiming Mrs Rooney ‘deliberately misled’ the court and that this amounted to a ‘serious misconduct’, which should lead to a reduction in the amount of money Mrs Vardy has to pay. However, Mrs Rooney’s barrister argued the costs could have been lower if Mrs Vardy has ‘conducted the litigation appropriately’.
Costs Risks in Litigation
Highlighted by this case is the speed at which costs can quickly build and in litigation the general rule is that the unsuccessful party will be ordered to bears the costs of the successful party. As shown, this can quickly amount to large sums of money so the importance of being on top of the costs and mitigating the risk of them rising too much is key when progressing through the litigation process.
How to mitigate costs and risk?
Property and Estates disputes can arise from various situations. There are ways to keep on top of the costs, including, but not limited to:-
- Engaging in ADR early: The first method to mitigate and lower costs during a litigation is to engage in early ADR processes. These can include a negotiation, a mediation or an arbitration to name a few. These often involve an impartial third party whose role is to assess the evidence and feelings of the parties and draft up a suitable settlement between the parties. If the settlement is agreeable, then the parties can end the litigation process without having to progress the matter to trial. Although there are costs associated with ADR, often they do not come near to the costs of going all the way to trial so provide an effective way to lower the risk of excessive costs during litigation.
- Make sensible settlement offers: Another way to mitigate or lower costs during a litigation would be to make sensible offers to the other party that encourage settlement. These can be made at any point in time up to the trial and should be respectful of the other party by giving an offer that is reasonable. Reasonable can be generous or tactical depending on whether you desire to end the litigation or to try and force the other party into a decision. Specifically, a Part 36 offer is effective due to the fact that if your opponent rejects it there is a chance that they are still be liable for a proportion of the costs even if they win.
- Accurate Costs Budgets: Finally, as shown in the case above the Rooney’s have far exceeded their ‘costs budget’, which if not for reasonable circumstances, there would be significant consequences. The main consequence is that the ‘cost budget’ agreed at the cost management conference cannot be exceeded and if it is, none of the excess can be recovered. This highlights the need for a comprehensive costs budget and the risk that an inadequate costs budget can have in relation to the costs recoverable during the litigation.
- Transparency: The costs involved in litigation can amount to large sums, which is why it is important that clients are advised from the outset of the likely costs involved, and that clients take time to consider their options at each stage as the case progresses. Proportionality should always be kept in mind.
Conclusion
Property and Estate Disputes require careful consideration of the legal issues. Understanding the legal process, legal grounds, and resolution processes can help individuals and companies better manage and resolve these disputes.
This is where Wilkes can help.
If you should require legal assistance in relation to a Property Litigation or Contentious Probate matter, please get in touch with Wilkes and a member of our team would be happy to discuss your case.
