Legal claims can cost a lot of money and for many people with business or personal claims this can be a major problem as they simply cannot afford to take action. Finding out more about the various funding arrangements that are available can help you decide if litigation is for you.
The Funder Bears the Financial Risk
A third-party funder’s exposure to cost is the key factor here. Their exposure to cost is greater than that of an individual or small business in similar circumstances, since if the case fails they will absorb the cost of the legal work in full, there being no one else to seek to recover the cost from.
What You Actually Receive at the End
Litigation funding is not free. The funder will receive a percentage of your damages in addition to a success fee, which will be deducted from your award to take into account costs and issues in relation to recovery of the same from the defendant in line with the Civil Procedure Rules and practice in the civil courts.
Not Every Claim Qualifies
Most funders are not interested in funding weak cases and will usually only consider cases with good legal merits and clear quantifiable losses. Claims with uncertain liability, small potential awards and inadequate paperwork are unlikely to be considered for funding.
What You Need to Demonstrate
The amount of evidence required to support a claim, the amount of damages likely to be awarded, and counsel’s opinion on the prospects of success.
Your Legal Decisions Stay Yours
The funder does not control the decisions that a solicitor takes in relation to a case. So even though a funder is involved in paying the solicitor’s fees, the claimant is still in control.
For Litigation Funding, see https://www.novo-modo.co.uk/litigation-funding.
Going in informed is key to finding a funding arrangement that will work for you.
