Resolving disputes, whether through litigation or alternative dispute resolution (ADR), can be expensive. It is also often an unbudgeted expense. Our lawyers can create funding packages tailored to your specific needs in order to alleviate the financial risk of litigation, free up cash flow and provide the most cost effective solution.
Contingent fee arrangements
Litigation can be funded by contingent fee arrangements including conditional fee arrangements or CFAs and damages based agreements or DBAs often known as “no win no fee” or “no win some fee” agreements. The legal costs payable under these agreements can be either wholly or partially contingent on success. A CFA involves payment of a percentage uplift over and above the lawyers normal charges, known as a success fee, and a DBA provides for the lawyer to be paid a percentage of the recoveries.
Third party funding
Third party funding may also be available in return for either a percentage of the recovery or a return on their investment.
After the event insurance
The risk of having to pay the other side’s legal costs may also be insured through after the event insurance (ATE). This is an insurance policy taken out after litigation is contemplated to insure against the risk of having to pay the other side’s costs. It can also cover the expense or disbursements of the litigation process. If you have pre-existing before the event insurance this may also be harnessed.
Contingent funding often involves a “success fee” which is not recoverable from the other side. The same applies to any sums payable to third party funders and after the event insurance premiums.
We work with clients to provide a detailed comparative analysis of the outcome of litigation where alternative funding is deployed so that clients can make an informed choice as to how best to fund their claim.