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[R. G. Newbury]

Brian Wood wrote:
> David Brodbeck wrote:
>> On Sep 11, 2007, at 3:12 PM, R. G. Newbury wrote:
>>> Up here, and in most of the
>>> common law world, the loser in the litigation pays the winner's  
>>> legal costs.
>> I have really mixed feelings about "loser pays."  I think it would  
>> discourage individuals bringing suit against corporations, even if  
>> there was a good chance of success, because if they lost they might  
>> be bankrupted by having to pay the company's legal bills.  Meanwhile  
>> corporations wouldn't be similarly intimidated due to their deep  
>> pockets.
> 
> Another problem is that such a system discourages out-of-court
> settlements. I used to be involved in arbitrations that had "loser pays"
> clauses. When a case would settle both parties would refuse to pay,
> stating that they "didn't lose".
> 


Hmmm. My experience is that often the parties agree to settle and either 
cover their own costs, or the settlement figure is an inclusive one, 
where the party covers his costs out of the gross amount, or as is more 
comnon where the claim is a good one, but the fight is about the 
damages, there is an allowance above the agreed damages, for the costs 
of the party. That number is a 'out of thin air' guesstimate by the 
lawyers as to what might be a reasonable figure and doesn't necessarily 
match what the actual costs are.

G.



-- 
              R. Geoffrey Newbury			
            Barrister and Solicitor
       Suite 106, 150 Lakeshore Road West
          Mississauga, Ontario, L5H 3R2

         o905-271-9600 f905-271-1638
           newbury at mandamus.org

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