Fees

We use cutting edge Project Management to scope, onboard and manage the engagement and are able to provide an integrated solution, including Alternative fee agreements, After The Event insurance (ATE) and Litigation Funding so that our clients have greater certainty over the potential financial outcomes of their litigation.

Project Management

Litigation involves third parties over whom we have no direct control, so for that reason, fixed fees in larger cases are not usually feasible as a pricing arrangement. However, we apply a disciplined approach to budgeting and work-plan development, and a commitment to actively monitoring and managing each matter using real-time financial reporting.

At the outset of each matter we create a detailed budget and case plan that scopes the work down to task and fee-earner level. We make this available in our pricing discussions and when applying for After The Event insurance or Litigation Funding. More importantly, we will do our best to stick to it and flag any issues early if it becomes apparent further costs may be incurred that were not contemplated by the initial budget.

We may also grant client online access, through bank grade security, in real-time to monitor tasks completed and ‘what’s on the clock’ by way of unbilled costs. This avoids the ‘bill shock’ that can accompany an unexpected large invoice. Part of our commitment to extraordinary service is built on transparency and open communication.

Alternative fee agreements

We are able to provide an integrated solution, including Alternative fee agreements, After The Event insurance (ATE) and litigation funding to provide clients with greater certainty over the potential financial outcomes.

Our fees are reasonable because we are a niche firm without the enormous overheads that burden our competitors. In any event, solicitors are required by law to provide a fee estimate at the outset of a matter. Melbourne Litigation is more openly communicative and transparent than that legal requirement.

Depending on what you consider a successful outcome of your matter, your priorities, both overall and for the matter, the key risks and opportunities and your specific pricing parameters, our value conversation during client onboarding will typically involve a frank and detailed discussion of pricing options including:

Volume Discounts
Blended Hourly Rates
Fixed fees/Flat fees
Capped fees (hourly rates not to exceed a set amount)
Collar fees (sharing of “savings” or “overages” should actual fees deviate from estimate)
Cap and Collar arrangements
Contingency fees or Uplift fees
Success or Performance Bonuses

We aim to ensure that our fee or value-based pricing arrangement reflects our clients’ goals and business objectives.

We are very open to discuss and model the different pricing scenarios to see if we can accommodate your specific requirements.

After The Event (ATE) insurance

Melbourne Litigation is one of the few Australian firms that can assist with one-off “after-the-event” insurance (ATE) insurance, an important weapon in commercial litigation, allowing our clients the freedom to pursue litigation with the reassurance of costs cover.

ATE insurance can substantially reduce a litigating party's exposure to risk as to legal costs should it not succeed in their case. This financial risk can include the opponent's legal costs as well as the lost opportunity to recover one's own legal costs from the opponent. This can often be a significant barrier to overcome when a client is considering the commencement of litigation.

Typically, ATE insurance works as follows:

The insured party could be bringing or defending the claim over retrospective events. The insurance is generally available regardless of the subject matter of the dispute and regardless of the type of relief or remedy being sought (monetary or otherwise).
The ATE insurer pays out only when an insured loses its Court case.
The ATE insurer will need sufficient information to assess each case on its merits, then they will tailor a policy specifically to the individual risk. The main requirement for obtaining ATE insurance is to satisfy the insurers that the applicant's chance of success on the merits of the case is at least 60% (this minimum threshold can be higher) and that the applicant will be able to pay the premium if it is required to do so.
ATE insurance covers: (1) adverse costs orders requiring the insured losing party to pay the winning party's costs; (2) the insured losing party's own disbursements such as barrister and expert fees; and (3) a portion of the insured losing party's own solicitors' fees.
The ATE insurance premium is usually between 25% and 60% of the sum insured
If the premium is "deferred and contingent upon success", it is payable only in the event of a successful outcome.
If the ATE insured loses the case, there is no premium to pay and the ATE insurer pays out under the policy.
As well as contingency there will usually be rebating stages factored into any premium to encourage early settlement; in other words: if the case settles early less of the full premium is payable.

If ATE insurance is of interest to you please Make Contact with us.

Litigation Funding

Litigation Funding is the provision of funds by those who have no connection with the litigation in return for a share of the proceeds. It is available for litigation, arbitration and other forms of Alternative Dispute Resolution.

Typically the funder will only consider those cases where there is a good prospect of success (>60%), the opponent has sufficient assets to pay or is backed by insurance (or both) and the estimated costs are proportionate to the value of the claim.

The funder will fund all or part of the legal costs and expenses of taking the matter to trial. If full funding is not required, it may be possible to obtain funding in respect of any one or more of the following:

A percentage of the legal fees that you will incur.
Some or all disbursements, such as expert fees or fees for counsel.
The opponent's costs that you may be ordered to pay if you lose.

Generally, litigation funders demand a return of three times their investment in the case (i.e. the litigation costs paid by them) or one third of the damages, whichever is higher.

The funder will perform due diligence. We will supply the funder with a summary of the case, its key documents and our detaile costs estimate. The funder may instruct external solicitors and counsel, at its own cost or at your cost, to assess the case on its behalf.

Litigation Funding, particularly when used in combination with ATE insurance and an alternative fee agreement, can be a powerful tool in derisking litigation. Melbourne Litigation is the pace-setter in this area. We invite you to Make Contact with us to discuss its application in your circumstances.