The £34 million in High Court legal costs facing Prince Harry and fellow claimants has sparked fresh warnings about the cost of litigation.
The warning comes from Ellis Jones Solicitors, based in Ringwood, following the failed privacy claim against Associated Newspapers brought by Prince Harry, Elton John, Baroness Doreen Lawrence, and others.
The case left the claimants facing total costs of potentially more than £34 million, including an interim payment of about £9.5 million.
Conor Maher, partner, solicitor advocate, and accredited mediator at Ellis Jones, said: "The costs consequences of getting it wrong can be catastrophic.
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"In England and Wales, the starting point is that the unsuccessful party pays the successful party's costs.
"That sounds straightforward.
"However, many litigants are surprised to discover that this does not usually mean the winner recovers every pound spent.
"Even where a party succeeds at trial, they may only recover a proportion of their legal costs following assessment.
"For commercial litigation, this often leaves a successful party with a significant shortfall."
Mr Maher compared the shortfall to an "insurance excess" and warned clients not to assume that "winning" means litigation will be cost-neutral.
He said: "The Prince Harry decision is particularly noteworthy because the court ordered costs on the indemnity basis.
"This is generally reserved for situations where the court considers conduct to have fallen outside the ordinary course of litigation."
Mr Maher gave a practical example to highlight the issue.
He said: "Imagine a company spends £150,000 pursuing a claim. It wins. It obtains judgment.
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"The court orders the opponent to pay costs. Excellent result.
"However, after assessment, the business only recovers £100,000. That leaves a £50,000 gap, despite being the successful party.
"Many litigants find this surprising and frustrating."
He advised businesses to consider litigation as an investment decision, not just a legal process.
Mr Maher said: "The critical question is not just 'Can I win?' but 'What will the net outcome look like after costs?'"
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