Irwin Mitchell offers claimants fixed fees in commercial litigation

Irwin Mitchell is to offer a new fixed fee service to potential clients wishing to embark on commercial litigation.

The national firm sees this as a logical extension of conditional fee agreements, litigation funding, and project fixed fees already offered in the market.

Its launch is a response to the rising costs of litigation, typified by the recent staggering increase in court fees and the 'outdated and expensive' hourly rate traditionally charged by law firms.

The firm says that lawyers can only estimate the number of hours a client matter will take, which leaves claimants with a huge degree of uncertainty about final costs.

Irwin Mitchell's head of business legal services, Niall Baker, commented: 'The requirement to budget for large but often uncertain sums at the outset of the litigation process is understandably not an attractive prospect for claimants and it is increasingly important for lawyers to proactively look for innovative funding arrangements to assist their clients to seek the appropriate redress.

'We believe we have listened to our clients and their need to receive accurate project (and costs) management. This is vital if access to justice for these parties is to be preserved.'

Jonathan Sachs, London head of commercial litigation at the firm, said: 'The obvious benefit of this product to a claimant is that he/she will have absolute certainty as to what it will cost to bring legal proceedings, and seek recovery of losses suffered. No extra costs above and beyond that which has been proposed will be charged.'

Upon instruction the firm will analyse the likely legal fees to be incurred by the client and then, in conjunction with expert law costs draftsmen, prepare a proposed fixed fee for each stage of the litigation process, including solicitors', expert witnesses', and counsel's fees.

'Corporate financial officers will be able to budget for the litigation appropriately - there will be no unwelcome surprises which would require an explanation to the board of directors, and no unexpected costs to report to shareholders. Claimant clients will be given a huge degree of certainty, in an often uncertain environment,' added Sachs.

 

John van der Luit-Drummond is deputy editor for Solicitors Journaljohn.vanderluit@solicitorsjournal.co.uk | @JvdLD