A win in a family provision claim may be a loss when legal fees are paid

A WIN IN A FAMILY PROVISION CLAIM MAY BE A LOSS WHEN LEGAL FEES ARE TAKEN INTO ACCOUNT 

Unfortunately, a litigant may have a win but after legal costs are taken into account the litigant is worst off. One such case involved a claim under the family provision sections of the Succession Act NSW.

Adam was left $129,000 under his mother’s Will. His brother, Wayne, was left with the balance under his mother’s Will. That balance amount to about $2.3 million.

Together, Adam and Wayne’s actual legal costs incurred in the litigation was more than $1 million.

Adam had spent $761,000 on his legal costs.

Adam was awarded $350,000 but his costs payable by the estate was capped at $125,000. Accordingly, Adam received $350,000 plus $125,000 for his costs – a total of $475,000. As he had paid (or had to pay) $761,000 to his legal team, he had lost $286,000.

If Adam had not commenced the litigation he would have received $129,000.

The end result was not one Adam would have wanted.

For advice on a possible family provision claim and the benefits of a negotiated settlement before or during litigation, contact Kathy Chase at Pittwater Family Lawyers by telephone (02) 9918 6565 or 0418 285 307 or via email at pittwaterfamilylawyers@gmail.com.au.