Thursday, April 2, 2009

Avoiding the Small Claims Tribunal

The previous post referred to the fact that in the normal courts (not the Small Claims Tribunal), the loser pays the winner's legal fees but usually only about 75%.

How to recover your full legal fees? If you draft a contract with your customers, include a clause which is often used by banks, credit card and finance companies. This clause states that if you have to sue, the other party will pay your legal costs on an indemnity basis. These key words mean that you will in all probability be granted your full legal costs. Of course, remember, this is only useful if the other party has funds to pay.

Consult your lawyer for more information.

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