Litigation: A Complete Overview of the Litigation Processes

Whatever your dispute may be, whatever issue you may be facing, it pays to have a trusted expert in your corner.  In particular, an expert that is experienced in litigation and dispute resolution and is able to help you take control of your situation and provide you with a clear path forward. In turn, providing you with piece of mind knowing that you are protected.

To take the first step towards peace of mind, schedule an initial consultation with our expert team and let us help you take control of your situation.

Contents

1.  Introduction

1.1  Purpose of this Guide

1.2  What is litigation?

1.3  What does a litigation lawyer do?

1.4  What is your role as a client in litigation?

1.5  What are key legal terms?

2.  Areas of Law that Litigation Covers

3.  What is the Litigation Process?

3.1  Informal Processes (Prior to legal proceedings)

3.2  Formal Processes

4.   Alternative Dispute Resolution Processes

4.1  Settlement Offers

4.2  Settlement conference

4.3  Mediation

4.4  Arbitration

4.5  Expert Determination

5.   Costs involved in Litigation

5.1  Costs

5.2  Cost Orders

6.  Timeframes

6.1  Commencing Proceedings

6.2  During Proceedings

6.3  Length of Proceedings

7.  Risks

8.  Additional Resources

1.  Introduction

1.1  Purpose of this Guide

The purpose of this guide is to provide you with clarity surrounding the complexities of litigation and to empower you with the knowledge to make informed decisions. This includes (among other information contained in this guide) outlining the various stages of litigation, key legal terms, your role as a client, timeframes, costs and risks that may arise.

1.2  What is litigation?

Put simply, litigation is the process of resolving disputes between parties. This can include:

a. ‘informal’ litigation processes such as letters of demand, cease-and-desist letters, negotiations or simply corresponding between the parties to achieve a resolution of the dispute; and

b. ‘formal’ litigation processes such as commencing (or enforcing) proceedings in the Court with the relevant jurisdiction (Magistrates, District, Supreme, Federal, Court of Appeal or High Court) or commencing proceedings in the Queensland Civil and Administrative Tribunal (QCAT) or Administrative Appeals Tribunal (AAT).

Litigation is inherently risky and uncertain because:

a. the result is not definite until judgment is given, and any appeal rights are exhausted.

b. there is no certainty due to the adversarial nature of litigation. For example:

i. a witness who has said one thing in his statement may change his position under cross-examination or contradict himself, making his testimony carry less weight.

ii. the other party may be in possession of documents that may materially affect your prospects of success and/or may be aware of a witness that may materially affect your prospects of success.

iii. the other party may present better at trial,  resulting in more weight being placed on their evidence.

iv. expert evidence may be required, which may materially affect your prospects of success.

v. it is not common (as it is a criminal offence - perjury), but a witness may be willing to lie on the stand during trial.

vi. the final decision is predominantly made by one person (i.e. QCAT/ AAT Members, Magistrate or Judge) based upon their interpretation on the evidence.

1.3  What does a litigation lawyer do?

A litigation lawyers role is to take the uncertainty of your dispute (or issue) and provide you with certainty and a clear path forward (good or bad), thereby providing you with peace of mind on how the dispute (or issue) may progress or be resolved.

Litigation lawyers otherwise provide assistance to resolve your dispute and/or mitigate the consequences of your dispute. This assistance can include but is not limited to:

a. Providing advice on avenues available to deal with the dispute, your prospects of success, issues that may arise with your case, risks arising from the dispute and further, providing advice on steps that could be taken to mitigate this issue occurring again in the future.

b. Drafting any relevant documents that may be required, including (without limitation) deeds of settlement, deeds of confidentiality, non-disclosure agreements, service contracts, independent contractor agreements or employment contracts.

c. Undertaking the informal litigation processes, including initial contact with the other party, letters of demand, cease-and-desist letters, informal negotiations or communication to try resolve the dispute without the need for legal proceedings.

d. If the informal processes are unsuccessful, then undertaking case preparation, including legal research, advice and obtaining evidence to support your case.

e. Commencing or defending legal proceedings before the court with the relevant jurisdiction or QCAT or AAT.

f. Once proceedings have commenced, undertaking further negotiations to attempt to reach a settlement and resolve the dispute without a trial (or final hearing).

g.  Attendance before the court, QCAT or AAT on your behalf, relating to hearings, trials or appeals.

Unlike general law firms that deal with a large variety of areas of law (i.e. conveyancing, commercial or business sales, wills, estates, employment, family or criminal), litigation lawyers focus predominantly on providing litigation and dispute resolution services. This means that they solely focus on disputes and the effective resolution of these disputes.

1.4  What is your role as a client in litigation?

As a client in the litigation your role entails:

a. Provide all relevant information: You must provide your lawyers with all relevant information and documents that relate to the dispute. This includes any information that may harm your case. This assists your lawyer in preparing your case, avoid surprises at trial and provide strategies on mitigating the harm any adverse information may cause on your case.

b. Communication: Maintaining open and honest communication with your lawyer is essential, as well as making yourself available to discuss any matters that may arise and informing your lawyers of any new developments as the dispute progresses.

c. Decision-making: You are responsible for making all decisions through the litigation process, including whether to accept an offer or commence legal proceedings. Your lawyer cannot make the decision for you. Your lawyer can only provide with your advice on your prospects of success, the issues and risks resulting from any decision that needs to be made.

d. Compliance: You must follow any courts orders or relevant legal procedures relating to your dispute, including any deadlines for filing material or attending hearings on the set dates.

e. Comply with Instructions: Your lawyers will provide you with a variety of instructions throughout your dispute, which require you to undertake respective steps (i.e. consult with a builder to obtain a quote to repair damage). It is imperative that you consider and comply with these instructions from your lawyer, as the instructions are given to assist your case.

1.5  What are key legal terms?

Throughout the litigation process, your lawyer may use a variety of legal terms that you may not be familiar with.

This section of the guide will set out key legal terms that you should be aware of:

2.  Areas of Law that Litigation Covers

As litigation is simply the process of resolving disputes between parties, almost all areas of law can fall within the litigation category at some point.

For example, a dispute may arise through the conveyancing process between the buyer and the seller of a property. The conveyancing process itself does not fall within the litigation category, but as soon as a dispute arises it evolves into litigation and this where a litigation lawyer can assist in progressing the dispute to an effective resolution.

3.  What is the Litigation Process?

Each litigation matter is different and therefore, not all matters follow the same process. It comes down to the circumstances of the dispute, the parties to the dispute and whether the parties are willing to resolve the dispute amicably between themselves or if it requires legal proceedings to be commenced.

A general overview of the litigation processes are as follows:

3.1 Informal Processes (Prior to legal proceedings)

a. Free Initial Consultation with Odyssey Legal

Discuss your matter with our experts, obtain guidance on the avenues that may be available to you and how Odyssey Legal can assist.

b. Letter of Demand

Whether you are attempting to recover a debt, require a builder to rectify defective work, require another party to perform a certain task, the first step is generally issuing a letter of demand.

This demand will set out a background to the dispute, your position, the demand and a notice that if the demand is not complied with, then proceedings will be commenced regarding the dispute.

Unfortunately, a letter of demand is still simply a letter, capable of being ignored as there is no legal requirement for the other party to respond or acknowledge the letter.

There are however circumstances where a letter of demand can progress the parties to a reasonable resolution. Again, this is simply dependent on the circumstances of the dispute and the party’s willingness to resolve it.

A letter of demand can be issued by a lawyer or by yourself.

c. Cease-and-Desist Letters

Whether you are requiring the other party to cease-and-desist from making defamatory comments about you, interfering with your use and enjoyment of your property (nuisance) or infringing on your intellectual property, a cease-and-desist letter can be issued to the other party, demanding that they cease-and-desist from their behaviour.

Similarly to the letter of demand, a cease-and-desist letter is still simply a letter, capable of being ignored as there is no legal requirement for the other party to respond or acknowledge the letter.

A cease-and-desist can be issued by a lawyer or by yourself.

d. Without Prejudice Offers

Without Prejudice offers are offers made for the purposes of attempting to resolve the dispute and have the parties reach an agreement to settle the dispute. The terms of any offer are entirely discretionary between the parties, as long as the terms are accepted by the other party.

e. Deed of Settlement

If the parties do reach a settlement agreement, resulting from a without prejudice offer (or otherwise), then it is common practice to formalise the agreement in a deed, which clearly sets out each parties’ obligations, what happens if a party fails to comply with their obligations (or the deed) and other general terms to give the deed business efficacy.

3.2  Formal Processes

a. Commencing proceedings

The plaintiff would commence the proceedings by filing a claim and statement of claim with the court, in addition to paying the court filing fee. The plaintiff must set out in the statement of claim all the allegations it intends to make against the defendant.

For example, breach of contract, breach of the Australian consumer law or negligence and the damages suffered due to the defendant’s conduct.

Once filed, the plaintiff must serve a copy of the claim and statement of claim on the defendant to allow the proceedings to progress and allow the defendant an opportunity to plead their case in response.

b. Defending (or counterclaiming) proceedings

Upon being served with the claim and statement of claim, the defendant has 28 days in which to file their notice of intention to defend and their defence. The defendant in turn is required to, set out in its defence, all the reasons it says it is not liable for (the basis for disputing) the case pleaded by the plaintiff.

If the defendant intends to countersue the plaintiff, then the defendant must set out in its defence and counterclaim all the reasons it says it is not liable for the case pleaded by the plaintiff and further, set out all the reasons as to why the plaintiff is liable to the defendant instead.

c. Reply

If the defendant raises new allegations not previously addressed by the plaintiff, the plaintiff can file a reply to address these new allegations.

NOTE: The purpose of requiring both parties to plead their case is to prevent either party from ‘keeping something up their sleeve’ to surprise the other party with at trial. The pleadings are only required to contain statements of facts on which the party’s relief but not evidence (this is dealt with during disclosure). The further purpose of pleadings is to narrow down and define the issues in dispute.

d. Disclosure

Disclosure is the process of each party being required to disclose all documents in their possession that are relevant to an issue in dispute in the proceedings. This means that even if the document adversely affects your position or helps the other party, you are still required to disclose it.

Disclosure occurs by each party drafting and issuing a list of documents, in addition to exchange of the documents (if requested). This is mostly done electronically; however, a party may request to attend and inspect the documents in person (as well as copy them).

There is however documentation that may not be required to be disclosed. A common example of this is any document that is confidential in nature or that attracts legal professional privilege (i.e. any advice from a solicitor or barrister on your case).

NOTE: Like pleadings, the purpose of disclosure is to require the parties to ‘lay their cards on the table’ to prevent surprises at trial.

e. Alternative Dispute Resolution

Upon completion of disclosure, the court generally requires the parties to undertake some form of alternative dispute resolution process prior to proceeding to trial. Naturally, it is open to the parties to conduct an ADR process (incl. settlement offers) throughout any stage of the proceedings.

The ADR processes are further set out below in section 4 of this guide.

f. Preparation for Trial

Prior to trial, it is crucial to review the case and begin preparations for trial. This can include:

i. whether the pleadings require any further amendments following disclosure. Pleadings can be amended as many times as required prior to a request for trial date being filed with the court. Once a request is filed with the court, the parties can only amend the pleadings with leave of the court.

ii. whether there is sufficient evidence to support your case or if further evidence is required to be obtained from relevant parties involved in the dispute;

iii. whether the expert evidence is sufficient or further evidence is required from other experts and whether each parties’ experts are required to confer and complete a joint report, outlining what they agree and disagree on;

iv. preparing witness statements, to determine the evidence that each witness will be giving. Each witness is to act independently and impartially and only provide evidence that is within their knowledge.

v. preparing notices to admit facts and documents – This is to narrow down the issues in dispute, by allowing the parties to identify the facts and documents that the parties agree and disagree on.

Once the pleadings, evidence and witnesses have been finalised, either party can issue a request for trial date on to the other party, requiring them to sign within 21 days. If they sign it, it is then filed with the court. If they do not sign it within the required timeframe, then the party issuing the request, may apply to the court for an order to dispense with the requirement to have the other party sign it and that a trial date be set.

g. Trial

The parties, including their respective witnesses, will be required to attend the court for the trial before a magistrate or judge. In some cases, the trial may occur before a jury, but it is commonly conducted without a jury (which differs from criminal trials). 

Generally, the parties would engage a barrister (in addition to their lawyer) to take advantage of their particular skills in advocacy and presenting the case as well as for their knowledge of court procedure and the rules of evidence.

A trial is generally conducted in the following manner: 

i. Opening Submissions – Each party has an opportunity to make their opening submissions to the court as to the basis for the dispute and their parties’ case.

ii. Evidence in chief – The plaintiff will call their witnesses to give evidence. The plaintiff’s lawyer or barrister will be able to question the witnesses as to obtain the evidence.

iii. Cross-examination -   The defendant’s lawyer or barrister will have an opportunity to cross-examine the plaintiff’s witness on the evidence they have given before the court.

iv. Defendant’s Evidence in chief – The defendant will call their witnesses to give evidence. The defendant’s lawyer or barrister will be able to question the witnesses as to obtain the evidence.

v.  Cross-examination - The plaintiff’s lawyer or barrister will have an opportunity to cross-examine the defendant’s witness on the evidence they have given before the court.

vi. Closing Submissions – Each party has an opportunity to make closing submissions based upon the evidence presented to the court. 

vii. Judgment – After considering the evidence, the Magistrate or Judge will decide the matter by delivering a judgment, which also includes a reason for their judgment. It is common for a judgment not to be decided on the day of trial, but at a later date.

h. Appeals

If either party believes that there are grounds for appeal (e.g. the magistrate or judge has made an error of law, an error of fact or a combination of both) they may be able to lodge an appeal against judgment. The appeal will then be determined by a higher Court. Strict time limits apply to file an appeal, and the right to apply is not automatic in all jurisdictions.

4. Alternative Dispute Resolution (ADR)                                        

There are various ADR processes that may be available, subject to the dispute or the circumstances of the dispute, including but not limited to:

4.1 Settlement Offers

A settlement offer can be made:

a. pursuant to the Chapter 9, Part 5 of Uniform Civil Procedure Rules 1999 (Qld) (UCPR) (also referred to as a formal offer).

b. on a ‘without prejudice save as to costs’ basis (also referred to as an informal offer) – explained above in section 3.1(d).

Generally, an offer will specify:

a. if the offer includes a settlement amount to be paid, then the amount to be paid and a timeframe for payment to occur (i.e. lump sum or by instalments).

b. a timeframe that the offer is open and capable of acceptance. If this timeframe lapses, then the offer automatically lapses and is no longer able to be accepted, unless the party making the offer agrees to extend the timeframe.

c. that the offer can only be accepted in writing. This is to ensure that any binding agreement between the parties is constituted in writing and the acceptance of the offer is unequivocal.

d. that the offer may be subject and conditional upon the parties entering into and executing a deed of settlement or another document which formalises the party’s agreement.

e. whether the offer includes a component for costs and/or interest (specified separately) or whether the offer is an all-inclusive offer.

f. what occurs once the parties’ respective obligations are satisfied, this may include releasing each other from any further claims or a discontinuance of any proceeding.

An offer will generally be subject to various general conditions, either implied into the agreement or expressed within the offer or within a binding instrument (i.e. Deed of Settlement). This includes but is not limited to:

a. A confidentiality clause, which specifies that the terms of the agreement are strictly confidential and must not be disclosed other than to the parties’ legal advisers or accountants or for the purposes of any proceedings.

b. A release and indemnity clause, which stipulates that upon satisfaction of the terms of the agreement, the parties release and discharge each other from any and all claims whatsoever that either party has now or in the future against the other, in relation to all facts and circumstances surrounding this dispute.

4.2 Settlement conference

A settlement conference is only available to proceedings in the Magistrates Court. If the parties are of the view  that a settlement conference would be beneficial, or alternatively, the court directs the parties to attend a conference, then a settlement conference may be listed with the court.

The purpose of the settlement conference is to come together for a detail discussion of the case to try to resolve the matter through offers to settle, or alternatively, to narrow down the issues in dispute, reach an agreement on admitted facts or documents or discuss the possible trial length, among other items that may be raised.

The settlement conference is conducted on a ‘without prejudice’ and confidential basis, meaning that neither party can use any admissions by the other party in the proceedings or any other proceedings (with limited exceptions).

If the parties can reach a settlement agreement following the negotiations, then the proceedings may be brought to an end upon performance of the respective obligations. If no agreement is  reached, then the parties may proceed with preparing for trial or seeking that a trial date be listed. 

NOTE: If a party fails to attend a settlement conference directed by the court, a registrar may give a judgment against them for their failure to attend.

4.3 Mediation

A mediation operates in a similar manner to a settlement conference. The critical difference is that an independent and impartial third party, being the mediator, is involved with the mediation process. The mediator’s role is to facilitate discussions, or settlement offers between the parties to see if the parties can reach a resolution of the dispute.

If the parties can reach a settlement agreement following the negotiations, then the proceedings may be brought to  an  end upon performance  of  the respective obligations. If no agreement is  reached,  then the parties may proceed with preparing for trial or seeking that a trial date be listed.

4.4 Arbitration

Arbitration is the process where the parties agree to appoint an independent and impartial third  party, being the arbitrator (who has expertise in the field related to the dispute), to make a binding decision on the dispute after considering each party’s case. This can occur during or prior to proceedings being commenced.

4.5 Expert Determination

Expert determination operates in a similar manner to arbitration, to the effect that an independent and impartial third party, being the expert, is appointed to make a binding decision on the dispute (or a particular issue) after considering each party’s case. This can occur during or prior to proceedings being commenced. This is common under shareholder agreements or company constitutions to allow for an avenue to resolve disputes that is easier and efficient then legal proceedings.

5. Costs involved in Litigation                                       

Litigation can be a stressful and costly process. It is therefore beneficial for you to be aware of the potential costs that you may incur, as well as the risks involved with an adverse costs order being made against you.

5.1 Costs

It is difficult to provide guidance on the costs that you may incur, because:

a. The hourly rate of lawyers varies from firm to firm. Some lawyers may charge at $550.00 (plus GST) per hour, while others may charge at $800.00 (or higher) per hour.

b. Each firm will charge different amounts to complete a piece of work in the litigation process. For example, some firms may estimate that it would take 3 hours to perform the work, while others may estimate that it would take 5 hours to perform the work.

c. Each firm provides different ways to charge. For example, some firms provide a fixed fee services, while other may only provide time-based services (they charge for the actual time spent on the work).

As a general rough estimate, the costs that may be incurred if the court proceedings were to go all the way to trial could be between $40,000.00 and $100,000.00. There have however been instances where the costs incurred to proceed to a trial have been less than this estimate, as well as instances where the costs incurred to proceed to a trial have been more than this estimate. It all comes down to the specific circumstances of your dispute and the conduct of the other parties in the dispute.

Under the Legal Profession Act 2007 (Qld), a lawyer is required to issue a Costs Disclosure, which sets out all potential costs that you may incur in your dispute, including if the dispute proceeds all the way to trial. This will allow you to consider the costs that may be incurred prior to commencing proceedings.

5.2 Cost Orders

The general rule of thumb in litigation is that if a party is successful, then they should be entitled to seek that the other party be liable for their legal costs.

This means that if you are the unsuccessful party, then you could be liable for the other party’s costs (adverse costs order), in addition to paying your own legal costs. This is one of the risks with litigation proceedings.

There are 2 types of costs orders, namely:

A standard costs order – which is an order for costs pursuant to schedule 1 (for District and Supreme Court or schedule 2 (for Magistrates Court) of the UCPR, or the alternatively, under the Federal Court Rules 2011 (for Federal Court).

These schedules are often referred to as a court scale and provide a fixed amounts claimable for undertaking relevant steps in the litigation process.

As it states, this is the standard order for costs and unless you demonstrate that an alternative costs order is appropriate, this is the order that the courts will likely make.

NOTE: Due to the limits of the amounts claimable under the respective court scales, there is always a risk that even if you are successful, you could still be significantly out of pocket.

An indemnity costs order - which accounts for majority of your actual legal costs incurred. This is at the court’s discretion. There are various factors that the court consider in deciding to exercise their discretion, including but not limited to:

a. making offers to settle which have been unreasonably rejected and the party making the offer obtained a better result at trial - the party that rejected party would have been in a better position had they accepted the offer but because they did not, the parties were put to the expense of proceeding to trial; or

b. demonstrating to the court that the plaintiff’s claim is frivolous, vexatious, should not have been  commenced and should be dismissed, or alternatively, that the defendant’s defence is frivolous, vexatious and has not prospect of success.

c. Either party conducting themselves in a frivolous or vexatious manner or failing to comply with orders or directions of the court.

NOTE: Please be aware that this is a simplified explanation regarding costs  orders.

6.  Timeframes

6.1 Commencing Proceedings

Generally, legal proceedings must be commenced within the timeframes specified under the Limitation of Actions Act 1974 (Qld) for the respective cause of action. For example, a party must commence proceedings for a breach of contract within 6 years from when the breach occurred.

If proceedings are not commenced within the requisite timeframe, then a party may be statue barred (prevented) from commencing proceedings.

6.2 During Proceedings

There are prescribed timeframes during legal proceedings that must be complied with. A failure to comply with these timeframes can have a consequences on a party’s case.

For example, a defendant must file a defence within 28 days of being served with the claim and statement of claim by the plaintiff. If the defendant fails to do so, then this has the consequence of the plaintiff being able to obtain a default judgment, being a judgment in the plaintiff’s favour due to the defendant’s default.

6.3 Length of Proceedings

This is another aspect of litigation that is entirely dependent on the circumstances of the dispute and the conduct of the parties, including whether they are open to compromise or simply wish to take the dispute all the way to trial.

A litigation lawyers’ goal is to resolve the dispute effectively and efficiently, at a minimum expense. This means that if the dispute can be resolved or a settlement agreement reached at an early stage, then this is the aim. However, there is often times where the party on the other side simply refuses to negotiate and wants to see the dispute go to trial.

Unfortunately, this can result in the dispute being on foot for a lengthy period of time. On average, it is approximately 12 –18  months before the proceedings may be ready for trial. Naturally, there is proceedings that can reach trial within a shorter period and on the other hand, proceedings that can take a few years before they reach trial.

7.  Risks                                            

There are a variety of risks that may arise during the litigation process, this can include but is not limited to:

a. A plaintiff commencing proceedings could be unsuccessful and be liable for the defendant’s costs of the proceedings. 

b. A plaintiff commencing proceedings could be countersued by way of a counterclaim  by the defendant.

c. A defendant could be unsuccessful in defending the proceedings and could be liable for the plaintiff’s costs of the proceedings.

d. The successful party only being able to reclaim a portion of their legal costs due to the court scale, resulting in them still being significantly out of pocket for the legal costs incurred.

e. The continual stress and costs of the litigation process for an extended period of time, can have an impact on a party’s wellbeing and mental health.

f.  The successful party has difficulty enforcing the judgment against the unsuccessful party because they go into hiding or dispense with their assets. This has the consequence of the successful party incurring significant costs in obtaining the judgment without the ability to recover any of these costs from the unsuccessful party.

g. The successful party has difficulty enforcing the judgment against the unsuccessful party because they simply do not have the funds or assets to satisfy the judgment and simply just go bankrupt (for an individual) or go into liquidation (for a company). This has the consequence of the successful party incurring significant costs in obtaining the judgment without the ability to recover any of these costs from the unsuccessful party.

8.  Additional Resources     

Uniform Civil Procedure Rules 1999 (Qld) -Uniform Civil Procedure Rules 1999 (legislation.qld.gov.au)

Supreme Court Case Library (Case Law) - Queensland CaseLaw collections | Supreme Court Library Queensland (sclqld.org.au)

Queensland Courts (has general information available) - Home | Queensland Courts

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ir="auto"&gt;<span class="Ps-xc">Queensland Civil and Administrative Tribunal Act 2009 -  href="</yoastmark">"https://www.legislation.qld.gov.au/view/pdf/inforce/current/act-2009-023" target="_blank" rel="noopener" data-hook="WebLink">Queensland Civil and legislation.qld.gov.au</a><a class="W7POc I8gJq" href="https://www.legislation.qld.gov.au/view/pdf/inforce/current/act-2009-023" target="_blank" rel="noopener" data-hook="WebLink">)

Queensland Law Society (information for the public) - k="WebLink">For the community - Queensland Law Society (qls.com.au).