How to minimise legal fees without compromising your case
Litigation – taking a case to court – is daunting. But it can also be exciting. If you feel you have been wronged, you may be looking forward to seeing justice done and possibly winning financial compensation. But you may also be worried about the cost. In some litigation scenarios the legal costs are assigned to the losing party. However, in cases such as divorce, eviction, property or business disputes, you may have a significant cost to bear even if you are successful. Litigation costs can quickly spiral out of control, but there are ways to manage these costs without compromising your case. Don’t avoid pursuing a legitimate claim because of affordability. How can you minimise the costs?
The true cost of litigation
Many law firms charge an hourly rate for their time, making it hard to know predict the total cost. There may also be hidden costs in addition to the attorney’s time, such as:
- Sheriff’s fees for serving documents and executing orders
- Expert witness fees
- Travel, accommodation and print costs
- Transcript fees (in appeals)
- Translation services (in international cases such as divorce or child custody)
These costs can cause a simple high court matter to cost hundreds of thousands of rands. You may also suffer lost income or additional child care costs if you need to take considerable time off work to attend hearings and meetings.
How to minimise legal fees – alternatives to litigation in the High Court
One way to limit costs is through the choice of where to institute your case. The Magistrate’s Court offers a more affordable litigation method than the High Court, though it does not have jurisdiction over all matters. If the claim amount is under R20,000, you can take your case to the Small Claims Court without a lawyer and at no cost. Other disputes may be appropriate for an applicable ombudsman.
Alternative dispute resolution, as the name suggests, is an alternative to litigation, which can reduce costs. It includes methods such as arbitration or mediation and offers a much faster and cost-effective way of resolving matters. Successful mediation can settle issues in weeks, if not days. However, the decision is not legally binding unless confirmed in the High Court.
Arbitration is more expensive than mediation, as an expert is hired to oversee the matter, and it is final and binding. However, arbitration is not suitable for all disputes. For example, a marital issue cannot be resolved by arbitration, whereas a rental dispute can.
Talk to your attorney
Most attorneys are happy to discuss your financial situation with you and consider an alternative fee schedule. Arrangements may include:
- Fixed fees for specific stages of litigation
- Contingency fees (“no win, no fee”)
- Hybrid arrangements combining reduced hourly rates with success fees (i.e., reduced fees during the dispute, to be settled by the proceeds of the “win”)
- Monthly retainer arrangements for ongoing legal assistance
Litigation funding
A newer solution is third-party funding of litigation (TPF). This allows you to seek financial support from a third-party funder in exchange for a portion of the settlement if your case is successful. The funding covers legal fees, court costs and other expenses. If you lose the case, you owe the funder nothing. Read more about TPF.
Case management
Costs can be significantly reduced through proper case management, which you can control. Keep organised records: create a chronological file that contains every relevant email, message, post, document, etc. This will save your attorney time searching for information and lower their fees.
Communicate effectively with your attorney: plan your questions before your consultation rather than making multiple calls. Use email for non-urgent queries and save face-to-face meetings for crucial strategic discussions. Complete tasks assigned by your legal team as soon as possible. Gaps in time can often lead to higher costs as the attorney may need to revisit the facts of your case.
Technology can also help to save costs. Virtual rather than in-person consultations will save time and travel costs. Electronic document management will save print costs. Online dispute resolution platforms are a type of alternative dispute resolution that leverages technology and reduces human labour (and the associated cost!).
Cost-saving tips that won’t compromise your case
You may be concerned that saving costs equals cutting corners. False economies should be avoided, but there are other ways to reduce costs that won’t undermine your chance of success. Invest time at the start by putting together relevant documents and developing strategies to prevent expensive mistakes and delays. Explore settlement opportunities. Settlement discussions will not weaken your case and are actually recommended in law. It makes business sense to settle on some of the issues, even if you can’t reach agreement on every matter. Partial settlement will narrow the scope of the case and reduce the costs of litigation.
Most importantly, particularly in high-stakes or highly emotional cases, such as divorce, stay focused on the material issues. Know what really matters and what you are prepared to compromise on. Avoid getting sidetracked by minor issues that do not significantly impact the final outcome.
However, certain elements of the litigation process are non-negotiable. Some activities are critical to the quality of your evidence and should be prioritised in your budget. They include:
- Expert witnesses when extensive expertise is important
- Senior counsel for complex legal arguments
- Thorough evidence gathering
- Comprehensive discovery in trials
Ultimately, working with an attorney you trust is probably the single most important factor in achieving a successful outcome. The cheapest option may not necessarily be the best or the most cost-effective solution. A good attorney will respect your circumstances and combine effective legal strategy with cost consciousness, enabling you to manage legal expenses while maintaining the integrity of your case.
SD Law can help
At SD Law, we offer monthly retainers and fixed arrangements where relevant and/or possible. We are a modern, client-centric law firm in Cape Town, Johannesburg and Durban, and we place responsible and ethical behaviour at the core of our approach. If your rights have been infringed and you want to bring your case before the court, we can help. Contact Simon on 086 099 5146 or email sdippenaar@sdlaw.co.za for a confidential discussion.
Further reading:
SD Law
The information on this website is provided to assist the reader with a general understanding of the law. While we believe the information to be factually accurate, and have taken care in our preparation of these pages, these articles cannot and do not take individual circumstances into account and are not a substitute for personal legal advice. If you have a legal matter that concerns you, please consult a qualified attorney. Simon Dippenaar & Associates takes no responsibility for any action you may take as a result of reading the information contained herein (or the consequences thereof), in the absence of professional legal advice.