Appealing a Case? Here’s How to Deal with the Costs and Minimise Risks
Appealing a legal case is a challenging process, in terms of legality, financially and time consumption. Appeals often involve substantial additional work, from reviewing previous case materials to constructing new legal arguments. As a result, managing the costs associated with appeals can be complex and daunting. The expenses tied to these proceedings are typically higher, and the stakes can be even greater due to the risk of having to pay the opposing party’s costs if the appeal fails. For these reasons, legal professionals must pay close attention to cost management during appeals to protect their clients and ensure a smooth financial journey throughout the process.
At County Cost Consultants, we understand these challenges and are well positioned to support clients and legal professionals in the costs involved in appeals.
Why Appeals Present Unique Cost Challenges
Appeals introduce a new layer of complexity to what can be, an already lengthy legal process. After a decision is made in the initial court proceedings, parties may choose to appeal either the decision or the judgement. While appeals offer a second chance to achieve a more favourable outcome, they also come with significant financial risks.
Appeals tend to be more expensive than first instance cases due to several factors:
Increased Documentation: The appeal process often requires extensive review of previous case files, transcripts, and judgments. This adds to the amount of time and resources required, ultimately driving up costs.
Legal Expertise: Appeals often involve specialised legal arguments and a deeper level of expertise. This results in higher solicitor and barrister fees, making cost management critical to keeping expenses under control.
Length of Process: The duration of appeals tends to be lengthy. More prolonged legal procedures mean additional legal costs for both the preparation and ongoing management of the case.
Risk of Cost Penalties: If the appeal is unsuccessful, the appellant may be liable for not only their own costs but also the respondent’s costs. This “double exposure” makes it vital to assess financial risks upfront.
At County Cost Consultants, our role in appeals is multifaceted. We ensure that our clients are well advised on the potential costs before pursuing an appeal and help them balance financial exposure along the way.
Understanding Recoverable Costs in Appeals
In the UK, one of the most important aspects of the appeals process is understanding the rules surrounding recoverable costs. These are costs that one party can recover from the other, depending on the outcome of the case.
Under Civil Procedure Rules (CPR) Part 52, which governs appeal procedures, costs in appeals follow a similar structure to those in first instance cases. The court has discretion to determine which party should pay costs and the extent to which costs should be recovered. However, the general principle of “costs follow the event” still applies, meaning that the unsuccessful party typically bears the costs of the winning side.
Fixed Recoverable Costs (FRC) and Appeals
With the Fixed Recoverable Costs (FRC) regime expanding across the UK legal system in 2023-2024, it’s important to understand how this impacts appeals. FRC sets predetermined limits on the costs that can be recovered in certain types of cases.
Though FRC primarily applies to lower value claims, its implications may still affect how cost lawyers advise their clients during the appeal process. If a case falls within the FRC remit, recoverable costs during the appeal process are capped, limiting the financial exposure of both parties. County Cost Consultants can provide expert guidance on how these limits apply and how to maximise cost recovery where possible.
Strategies for Managing Costs in Appeals
Given the financial risks involved in appeals, it’s crucial to have a comprehensive strategy to manage these costs. At County Cost Consultants, we take a proactive approach to cost management throughout the appeal process. Here are some of the key strategies we employ:
1. Pre-Assessment of Financial Risks
Before an appeal is pursued, we conduct an in depth cost benefit analysis to ensure that the potential rewards outweigh the risks. This includes a review of all past costs and an estimation of future costs related to the appeal, giving the client a clear picture of the financial commitment involved.
2. Detailed Cost Budgets
Accurate budgeting is crucial for controlling appeal costs. A well prepared cost budget sets clear financial expectations for all parties involved, minimising the likelihood of unexpected expenses. In appeals, where the stakes are often higher, having a solid budget in place can make a significant difference.
3. Expert Cost Recovery Advice
Cost recovery in appeals can be complicated. We provide expert advice on how to optimise cost recovery strategies, particularly when it comes to presenting cost schedules that clearly outline the expenses incurred. This helps ensure that our clients recover as much as possible from the losing side.
4. Effective Use of ADR
Alternative Dispute Resolution (ADR), such as mediation, is an effective strategy to minimise litigation costs. ADR methods can sometimes resolve disputes before the appeal hearing, saving significant legal fees. At County Cost Consultants, we advise clients on whether ADR is a viable option and assist them with the financial aspects of these alternatives.
5. Clear Communication with the Client
Throughout the appeal process, it’s important to maintain clear and open communication with the client. Clients must be fully aware of the financial implications at each stage of the process. This allows them to make informed decisions and avoid unnecessary expenses.
The Role of County Cost Consultants in Appeals
At County Cost Consultants, we are experts in managing the costs associated with appeals, from the early stages of the process through to the final decision. We offer a cradle-to-grave service, meaning that we assist our clients throughout the entirety of the legal proceedings, including any appeals. Our experience in this niche area of law enables us to deal with the complex rules governing cost recovery, ensuring that our clients are always in the best possible financial position.
