Claims under the UK Court System
What are Adverse Costs?
Consumers must understand and consider how to fund the costs in delivering their own case, the costs called “Cost of the case” are paid to the consumer’s representatives. That said, a consumer will be told from the outset that every case delivered to the courts or adjudicator attracts risk, thus in all litigations a consumer is exposing themselves to the risk of losing their case. In the event the case is lost, it is likely that a consumer will be expected to pay the opponent’s costs, as these costs do generally follow the event. These potential costs are termed as adverse costs and the consumer will have to pay them, should the court rule this. It is true to say in every case the paying of adverse costs is a risk and a consumer should have just regard for that risk and prepare for the potential liability. Not to do so, and equally not to consider adverse costs, might come back to bite the consumer in the future which could cause problems in the event the liability is amortised by the court.
Accordingly, a consumer should consider ATE insurance or some other form of assistance should that event become a reality.
In all cases a professional lawyer will refer to the risk as not to do so would be a breach in the duty they owe their client.
The actual amount of the costs a consumer may become liable for will be either delivered by the trial judge, who will summerly assess them, or they will be assessed via a separate cost hearing, where the costs will be analysed and subject to other representations and countering assertions.