Suing

1. Is It Worth It?

Going to law is expensive and stressful. Right or wrong, do not litigate on a matter of principle.

1.1 How clear is the legal position?

• It may be clear that you have a claim.
• There may be two sides to the story.
• The legal position may be complicated. Unless you are completely sure, -take legal advice before starting any legal action.

1.2 Does it make financial sense? In straightforward claims, you may be able to make a rough estimate of how much you will be awarded.

• If you have rejected goods entirely, you could claim a straight repayment.
• For breach of trading contracts, damages may cover consequential business losses.
• Losses arising from an adviser's negligent investment advice may depend on how you would have invested in the absence of advice. Even if you win, you may not get your legal costs back.

1.3 You can claim interest on most commercial debts at enhanced rates.

• When calculating your claim you should always ensure that you have included your full entitlement to interest.
• Statutory interest, as well as debt recovery compensation, can be claimed on most commercial debts. You can recover interest at 8 per cent above the Bank of England base rate, but the calculations can be complicated. You should discuss this with your legal adviser.

1.4 If you won the case, would the defendant be able to pay? Credit information and credit reference services can provide you with a credit rating and information about court judgments (against the defendant) that have not been paid.

1.5 Will you be able to prove your claim? In court, you have to prove your case. The defendant does not have to disprove it. Evidence is vital (see 4).