WHAT IS LITIGATION FUNDING
Litigation funding, also known as Third Party Financing or Legal Financing, occurs when a Law Firm requires Funding for their own legal costs to Fund a Legal Action case for or on behalf of their client. Usually, these are complex cases and potentially can be very costly and lengthy. Litigation Funding can be broadly split into 4 different forms:
We have extensive experience and personal relationships with the major Litigation Funders internationally and are always available to provide information and advice on these options to fund your case. When a Party wishes to take action against another, the defining factor to proceed will be the actual Cost of the Legal Action. In most cases this will be the cost of retaining their own Law Firm but also in the event of the case being lost, then cost of the other Party's Lawyers will also need to be paid. This is called a Judgement for Adverse Costs and in many cases, the Judgment is issued then the loser will have to pay the other sides Legal Costs.
A solution is to arrange for "SECURITY OF COST" cover. This is an insurance policy linked to the ATE (After-the-event) Insurance Policy that will pay for the Adverse Costs if a judgement is made against the client.
Litigation funding is not a new concept. It has been common practice in England and Wales since 1967. In the 1990's, modern commercial litigation funding arose in Australia and over the last 8 years has been very important in Class Action Suites in the United States. In Canada, the courts have permitted Litigation Funding over the last 5 years. Since then, funding has spread around the globe.
AFTER THE EVENT
After-the-event (ATE) insurance is taken out after an event, such as an accident which has caused an injury, to insure the policyholder for disbursements, as well as any costs should they lose their case.
BEFORE THE EVENT
Before-the-event (BTE) Insurance is taken out by those wishing to protect themselves against potential litigation costs that could be incurred following a potential future event. As mentioned these costs often include fees of solicitors, barristers and expert witnesses, court fines and fees, and any legal costs awarded to the other side
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