What It Costs to Run a Property Damage Claim
What Does It Cost to Run a Property Damage Claim?
One of the most common questions I receive is:
“How much will it cost to pursue my property damage dispute?”
Tough question but here goes…
The short answer is: more than most expect.
But if you don’t pursue you can RECOVER!
Firstly, lawyers are required to provide estimates of legal costs and disbursements.
In property damage cases a big disbursement is expert evidence.
At Brockhill & Usherwood Lawyers we view costs in two stages.
Stage 1 – Investigation
Before legal proceedings can be considered, it is necessary to determine whether there is a viable claim at all.
Property damage can arise from numerous causes including trees, subsidence, heave, water ingress, defective building work and neighbouring construction.
Before estimating stage 2 - legal proceedings you need to know if you have a case, against who and in what forum.
Initial investigation costs typically starts at around $3,000–$5,000 + GST. This usually involves the minimum step of reviewing existing documents and reports, instructing a highly qualified expert under a formal instruction letter to inspect your property and obtaining a preliminary opinion on what causation is likely to be.
More complex matters, particularly heave claims and cases requiring multiple experts, can cost substantially more.
Stage 2 – Legal Proceedings
Once causation and liability have been properly investigated, the cause of action(s) can be determined and proper defendants or respondents and legal proceedings may be commenced.
If matters proceed to AFCA a well drawn legal complaint can be in the order of $5,000 + GST.
Going to Tribunal or Court requires a lawyer and a typical property damage dispute may involve legal costs of approximately $20,000 - $30,000 through to mediation.
If the matter proceeds to trial, costs increase significantly. Even relatively modest cases can involve total costs in the order of $75,000–$90,000 for a single expert case with conclave and a one day hearing.
That is a significant investment. However, property damage litigation is evidence driven. Without quality expert reports, property owners often do not know what caused the damage, who is responsible, or what it will cost to rectify.
Plus many cases settle before trial.
BUT owners seeking compensation must be prepared to pursue their case to trial.
The good news is that successful litigants may recover a substantial proportion of their costs at Tribunal or Court especially where early offers are made. Indemnity costs may be awarded where reasonable settlement offers have been rejected. At Brockhill & Usherwood Lawyers our practice is to make offers like a Calderbank early.
Property damage claims can be costly. But failing to properly investigate the cause of the damage can be far more expensive!
This article is a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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