Third Party Litigation Funding
QLP Legal provides third party litigation funding to individuals and companies to cover the on-going costs associated with litigation. We are an independent broker with access to a number of funders whose combined resources exceed £100M.
Third Party Litigation Funding is just that, and with litigation costs as they are, the cost of some actions is too expensive to pursue, however meritorious. There are however options available, one of which is a third party funding agreement whereby in return for an agreed proportion of the damages funds are made available to a litigant for on-going costs, thus addressing the inequalities often found within litigation. Claimants have the means to fight ‘David and Goliath’ cases where financial resource can be a key component of success.
Funding can be provided for:
- Solicitors' and Counsel’s fees
- Expert Witness costs
- Security for costs orders
- Court & tribunal fees
- Legal Expenses Insurance premium (unless deferred)
The 3rd party funding market is both innovative and expanding with funders prepared to support a wide range of case types within both UK and other overseas jurisdictions.
Areas of interest include:
- Commercial litigation
- Breaches of contract
- Shareholder disputes
- High end employment cases
- Professional negligence
- Insolvency
- Intellectual property disputes
Funding can be provided for a wide range of amounts between a minimum of c. £25,000 and potentially in excess of £10M.
Funders only profit if the litigation is successful whereupon they will charge a percentage of the damages typically varying between 2% to 45% depending on the loan to recovered damages ratio. Generally, providing the client has met their obligations under the Agreement then if the case is unsuccessful there is nothing to repay to the funder.
In terms of practicalities, following successful application funders will agree a budget setting out a schedule of payments detailing how and when monies can be drawn down. Any budget will include contingency plans should costs overrun, but funders generally only expect a profit return based on monies that have been actually used.
QLP can also source Legal Expenses Insurance in combination with funding to provide a comprehensive package giving the means to fight regardless of the length of case and which mitigates the cost of losing and having to pay opponents costs.
