Funding Options for Litigation Claims
The cost of litigation can be substantial and funding it can be difficult. We are always ready to discuss our clients’ needs and the available funding options.
The summary below provides the options which can be used to assist you in funding your claim. Subject to the merits of the case, each option can be tailored to suit your requirements.
Our fees are billed at standard hourly rates on a time spent basis, plus disbursements and VAT.
Conditional Fee Agreement (Discounted)
This is where part of our fee is postponed. The postponed fee and a success fee only becomes payable when certain pre-agreed success criteria are met. Please note that not all claims are suited to this type of funding .
Contingency Fee Agreement
Currently solicitors are not permitted to enter into contingency fee agreements in respect of court proceedings (litigation) and arbitrations held in England and Wales.
Fixed Fees (usually for small claims or non-contentious matters)
We agree to carry out all or specific parts of the case, or to work for a defined period, for a fixed price, regardless of the time spent, with our fixed fee to be invoiced monthly in agreed amounts.
Legal Expenses Insurance
Before the event legal expenses insurance (‘BTE’): Following a claim being made under a client’s existing insurance cover (e.g. pursuant to warranty indemnity, business interruption or property related cover), costs of a claim may be indemnified by an insurer, subject to the terms of the policy and indemnity limits.
After the event legal expenses insurance (‘ATE’): Subject to eligibility criteria and the required indemnity limit, ATE may be purchased by a client to cover adverse costs (a liability to pay an opponent’s costs); or adverse costs and an element of own disbursements; or adverse costs, an element of own disbursements and a proportion of own costs.
Third Party Funding
In specified circumstances an external funder (such as a professional funding company, or insurer or venture capital fund) may agree to fund the cost of litigation, including any adverse costs payable to an opponent. If agreed success criteria are met, the funder charges a multiple of funding, or a fee based on the amount of the funding plus interest, or a fee based on a percentage of monies recovered from the opponent.