Costs
Who pays the costs of a commercial dispute
Elise Marlowe · 18 September 2026 · 1 min read
Winning is not the same as being made whole. A practical look at costs orders, offers of compromise, and why the first settlement offer matters.
The question I am asked most often is not whether a claim will succeed. It is what the whole exercise will cost, and whether the other side will end up paying for it.
The starting position
In most commercial matters the general rule is that the unsuccessful party pays a portion of the successful party’s costs. The portion is the key word: standard costs are usually a percentage of what was actually spent, not all of it. The gap is real and should be part of the decision to proceed at all.
Offers change the arithmetic
A formal offer made early and beaten later can shift the costs of the whole proceeding. That is why the first genuine offer is a strategic document, not a formality, and why it should not be sent before the claim has been assessed properly.
Three questions before you file
- Can the other side actually pay, whatever the outcome?
- Is there a commercial outcome that does not require a court?
- What is the cost of being right, compared with the cost of moving on?
Answering those honestly before the first letter is sent usually saves more money than any argument about the merits.
General information only, not legal advice about your matter.