How an outcome can affect costs

If a matter succeeds or settles

Compensation and legal costs are separate amounts. Ask what a proposed settlement says about costs and whether any payment from another party will meet all of the sums payable under your own agreement. A balance may remain payable by you even after a successful outcome.

Before accepting settlement terms, make sure the explanation distinguishes the amount of compensation, costs recovered from elsewhere and any remaining payment for which you are responsible. The final bill should identify relevant recoveries as required by law.

If proceedings are unsuccessful

An agreement affecting your own solicitor’s professional fee does not automatically protect you from another party’s costs. Section 169 provides a general rule that an entirely successful party in civil proceedings is entitled to costs against an unsuccessful party, unless the court orders otherwise. The court considers the circumstances and conduct of the case. Particular statutory rules can also affect the position.

Ask what you would owe for professional fees, outlays and third-party costs in an unsuccessful outcome. These are separate questions, and a shorthand label cannot answer them.

If you stop the case or change solicitor

Ending an instruction early is not necessarily the same as completing a case without success. Ask how the agreement deals with work already done, expenses already incurred and any transfer to another solicitor.

Discontinuing court proceedings can also create liability for another party’s reasonable costs unless the court orders, or the parties agree, otherwise. Obtain advice about that consequence before making a decision.

Consider the position before the decision

The costs explanation should address withdrawal and potential liability to other parties where litigation is involved or likely. Ask for an updated explanation when a proposed settlement, court step or decision to stop changes the questions you need answered. No webpage can determine those consequences for a particular case.

Page prepared: 27 October 2026.