What is a litigation funding agreement?
A Litigation Funding Agreement is an agreement that enables your solicitor’s fees (and disbursements) to be paid without any cost to you. This can be on a “no win no fee” basis or by way of third party funding that provides funding in exchange for a share in the outcome.
A Litigation Funding Agreement can be any agreement to enable you to fund a claim in Court against another person, company or other legal entity. Any arrangement which satisfies the needs of your instructed solicitors (i.e. that they get paid) and which is not illegal is in effect a litigation funding arrangement.
A litigation funding agreement can be entered into with your solicitor, either fixing an amount of cost payable for a specific stage, a specific piece of work or a specific period of time.
Alternatively, such an arrangement can be based on his perception of the likelihood of success (a Conditional Fee Agreement or on a contingent basis as a proportion of what you recover (a Damages Based Agreement ).
Alternatively, agreements can be entered into with third party financial institutions, who may agree to an arrangement where they fund the solicitor’s costs at their standard rates but otherwise agree to a proportion of the reward. This is commonly referred to as a third party funding arrangement which is becoming an increasingly common facet in the modern legal market.
At Francis Wilks & Jones we are extremely familiar with all types of funding models and are also receptive to any alternative proposals. We have access to a wide range of litigation funders who may be able to assist you and have a comprehensive experience of alternative litigation funding models, appropriate to your needs.
Please call any member of our commercial litigation team for your consultation now on 020 7841 0390. Alternatively e mail us with your enquiry and we will call you back at a time convenient to you.
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