Litigation and court cases

Litigation - the solution of last resort

Because of the risk and extremely high cost of litigation (see below), it should usually only be used to resolve a problem if all else fails. But there are times when it is an important weapon in a lawyer’s armoury – provided it is not the only weapon!

Effective and cost-effective alternatives to litigation

The golden rule in getting a potential or actual dispute resolved as quickly and effectively as possible is to use the right lawyer - one with negotiation and dispute or conflict resolution skills - and to get him or her involved as early as possible. Don't leave it until the dispute becomes entrenched. This can also save you a lot of money in legal costs.

Dispute road map and court cases

Ask your lawyer to map out for you the possible course of a dispute, the possibility of escalation of a court case via a cross claim, the probable outcome of litigation, the legal fees and an explanation of all the other costs set out below. If you don't get this, you are using the wrong lawyer.

Other costs - the price you pay for litigation

Your legal costs are just one component of the price you pay. In addition:

• A lot of your time will be spent dealing with preparation and court proceedings;
• A lot of negative energy is associated with litigation;
• You will be distracted from other pursuits, perhaps more valuable or important;
• You are likely to suffer in other ways (e.g. stress and personal relationships).
• If you lose you will usually have to pay the other side's legal costs.
• If the other side cross claims and wins, you will have to pay damages to them.

Escalation of litigation

One thing that you need to be very careful about before deciding to commence legal proceedings is whether or not there is any possibility of a cross claim. Your claim may be fairly straight forward and relatively inexpensive but the cross claim may be complex and cost a lot of money to defend.

Compromise rather than litigation

We go to great lengths to explain where a dispute may end up and how much it is likely to cost you if it is not nipped in the bud so you can make an informed decision about the best way forward.

Debt collection

If you would like some information about effective debt recovery, see Debt Collection.