Why time really does matter in litigation
Litigation partner, Ieuan Jones, provides some useful guidance to those who may find themselves in a dispute.
When talking to people about the short-term future, the word that often crops up is, “uncertainty.” There is a war raging in Europe, which is causing havoc with the UK’s energy prices and the cost of living. Recent government decisions have led to economic turbulence. Plus, the aftereffects of Covid are still being felt acutely in some sectors. Each in its way is having a significant and damaging effect on the economy, limiting the ability of businesses to make sensible forecasts for the times ahead.
There is little doubt that this economic uncertainty is putting people off from trying to resolve their commercial disputes until another, future date.
However, taking litigious action now may be better in the long run, rather than sitting on a potential claim until it is nearly too late.
Cashflow
As a general rule, few people want to litigate. Litigation is an action someone is usually forced into taking, rather than something they walk into with open arms.
A claim will usually be brought because someone believes they are owed money in one form or another and, without it, their business will suffer or, in extreme cases, go bust.
Clients can therefore be understandably reluctant to claim unless they are forced to, allowing them to protect their cash flow and not risk potentially losing money on chasing a claim that they may not win.
We understand this and it is for this reason that we aim to talk through more creative solutions for recovering their losses, which are more suitably commercial than they may expect.
There is more than one way to skin a cat…
…Or, in our case, litigate a claim. When most people think about litigation, or bringing a claim, they think about going to court. This also leads them to think about long delays, high costs, and real aggravation that the court process usually involves. No wonder so many throw in the towel before they have even begun and choose to write off their losses instead!
However, this is nowhere near the full story. The majority of our cases manage to resolve themselves without using the court procedure at all and, of those that do, many settle before they reach a final hearing.
Most people will be familiar with mediation, which is by now as common in commercial as it is in family matters, for resolving disputes. Mediation is among a few other types of “ADR” (Alternative Dispute Resolution), used for negotiating and settling disputes without going to court.
Resolving disputes this way has the overall effect of keeping the cost down for the client and seeking to avoid the frustrating procedure they would otherwise go through during litigation.
Alternative ways to pay
In most cases, where commercial clients bring a claim, they are willing to pay the cost of doing so, to secure settlement of the larger sum they are owed. On some occasions, however, they are unable to meet the cost of running a case and need to consider further options.
This may mean digging out their legal expenses policy to see if they have coverage. If they do not, there may be other options for funding on the market, such as an “after the event” policy. We are open to discussing creative solutions with our clients as to how their litigation claims may be funded.
Limitation
As a final point, it is also worth mentioning limitations. The limitation is the ultimate end date for bringing a claim and, if you miss the limitation date, then you will lose the right to bring your claim through the court. Some limitation periods can be pretty lengthy (for example, up to six years from the date of the breach of a simple contract).
It is, however, easy sometimes for clients to forget that there is a final deadline for bringing claims, meaning you will not be able to sit on it indefinitely. Also, by letting the limitation period run down, you are losing valuable negotiating time for resolving your dispute without being forced to use the court procedure.
What to do if you are thinking of Litigating
Although there isn’t usually a “right time” to bring a claim, it is also the case that sitting on a claim until it is nearly too late is unlikely to be a sensible or cost-effective solution.
As experienced litigators, we know this. We also know the simplest and most effective solutions to resolve most commercial disputes in a way that will help you recover your losses – in other words, recover the losses which will help your business survive and thrive.
Where your situation is more complicated and it looks like the claim will not be straightforward, we will be able to give you advice to this effect, as well as advise you on the best, most cost-effective solutions for the problems you face.
If you’re looking at bringing a claim, get in contact with our specialist disputes and litigation solicitor Ieuan Jones via ieuan.Jones@gasolicitors.com or call 01752 203500.