What is litigation funding?
Litigation funding, or legal funding, is a method for paying solicitor’s fees using the strength of your claim. This can include a “no win no fee” agreement with your solicitor or third party funding by a financier who pays your legal costs in return for a share in the outcome.
Litigation funding is similar to legal funding but for the difference that the legal services provided are only in respect of contentious proceedings issued at Court.
Whilst funding can be negotiated for pre-action or non-contentious legal services, litigation funding only refers to the point at which Court proceedings have been issued or are about to be issued.
The other difference with litigation funding is that it has other risks to provide for, as opposed to the standard funding of legal costs on a non-contested or out of Court basis. These risks include the risk of being unsuccessful, whether that be in your claim or in your defence, and (most importantly) the risk of your opponent seeking their payment of their legal costs (which will almost always occur as a result of your claim or defence being unsuccessful.
These risks can be protected against. However, to protect against them you either need a litigation funding that will additionally insure you against such risks (as is usually available from litigation funders) or you should ask your lawyer to obtain insurance (ATE Insurance) which will protect you against such risks up to a specified limit.
At Francis Wilks & Jones we are extremely familiar with litigation funding and can advise you on what is appropriate to your personal circumstances. We will discuss funding models with you and have access to a wide range of litigation funders in the event you require such assistance to enable your claim to be issued.
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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