Funding for Litigation and Arbitration
We are very pleased to announce that we are now able to offer an innovative type of funding for litigation and arbitration.
Litigation funding (the mechanism through which a third party funder provides funds to a litigant (usually the claimant) in order to finance litigation or arbitration) is fast becoming an area of increasing importance to parties involved in disputes. Not only does it allow a party who cannot afford to pay its legal fees (or to take the risk of losing and paying the other party’s fees) to pursue meritorious litigation, but it also allows clients who are able to afford the fees and the risks to spread their exposure to such risk of litigation and to take cases “off balance sheet” for accounting purposes.
Traditional models of funding are normally only available to those parties with meritorious claims of a value in excess of £5 million, with the funder taking a substantial success fee if the case is won. With the model, which only a few law firms approved by the funder are currently able to offer, litigation funding is now available to a wider pool of clients.
The key features of the model are:
- Available for claims with a value of less than £5 million;
- Access to highly competitive After The Event (ATE) insurance protecting the client against the risk of paying its opponent’s costs if the case is lost;
- We share the risk by acting on a partial Conditional Fee Agreement (CFA) and the client usually pays a small proportion of the legal fees;
- Limited exposure - with the innovative structure of the model, if the claim is unsuccessful, the client will ultimately only pay approximately 2% of its overall costs and none of those of the opposition;
- Increased gain - if the claim is successful, the funder takes a smaller success fee than traditional funders do.
With our expertise and excellent relationships with the major players in the litigation funding market, as well as our access to this innovative and exclusive funding model, we are well placed to advise our clients on what funding options are currently available for commercial cases and which would best suit their particular circumstances.