Welcome to Money Tips Daily this is Money Kelly bringing you
money tips to help you save and make more money!
Avoid litigation. The well-known phrase "I'll see you
in court" often ends in the bankruptcy court or losing your house to pay
legal costs, which can run into millions.
Not only is litigation costly in terms of legal fees, but it can also
take up an awful lot of time and energy, and literally drain you emotionally.
I once got involved in a dispute over a £500 unfair charge
by a freeholder on a leasehold flat I owned. To cut a long story short, they
kept escalating to so-called ‘costs’, like a game of poker, and we ended up
going to court, but by this time they were claiming £14,000!
The case took two
years of my life fighting this small dispute. In the end, with the help of a great
city barrister, who charged me £2000 upfront, I won the case and got my legal
costs back. However, in reality I had lost hundreds of hours of my time, energy
and sleepless nights.
At all costs, avoid going to court and use arbitration
services, ombudsman or just common sense to settle disputes. Sometimes you just need to talk!
Courts and Judges are notoriously fickle and you can never
guarantee which way a case will go. Barristers know that if you upset a Judge, for instance by arguing or not submitting papers on time, the case could go against you.
In the case of smaller disputes over charges you think you are incorrect, it is sometimes better to pay the
charge and dispute it after (obviously not in the case of a dodgy builder who has just messed up your kitchen) . This especially applies to utility companies,
banks and credit card companies, who have an unfair advantage over us in that
they can register a late payment or default against us which will damage or
credit rating, without even going to court.
Bonus tip. Add legal expenses insurance to your household
and motor insurance. It is usually very inexpensive and could save you a lot of
money.
Action...Be a mediator not a litigator.
Check out my Podcast episode "Avoid Litigation Be A Mediator
Not A Litigator " on Anchor! https://anchor.fm/charles-kelly/episodes/Avoid-Litigation-Be-A-Mediator-Not-A-Litigator-e1632k
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