Helping with your litigation funding Options
Litigation can sometimes be a long and costly process and you may feel like justice is only available to those with deep pockets. The prospect of paying legal fees to bring or defend a claim can be daunting but here at Monarch Solicitors we provide several different litigation funding options to suit your case and financial circumstances.
Our litigation solicitors can discuss the viability of the different litigation funding options available and work with you to analyse which option best suits your individual needs.
Litigation funding options can include:
- Pay as you go
- Fixed Fees
- No Win No Fee (CFA)
- Discounted Conditional Fee Agreements (DCFA)
- After the Event Insurance Funding (ATE)
- Before the Event Insurance Funding (BTE)
- Third Party Funding
It is important to choose the funding option that is best for you or your business to reduce the cost and stress involved. We are happy to discuss your financial circumstances and help you decide which funding option is most suitable for you and ensure that your money is used in the most effective way.
Pay As You Go
You can pay for your case on a ‘pay as you go’ system. This will be charged at our hourly rate for the time spent working on your case. You will be provided with a time sheet detailing exactly what time was spent on your case so there is full transparency on all the charges.
We can provide an estimate of the costs involved at the outset so that you have an estimate of costs in mind before you bring or defend the case.
The exact cost will then be finalised based on the time spent working on the case.
In certain circumstances we may consider capping the fees for each stage to an agreed amount or deferring the payments due to a future date.
Depending on the type and complexity of your case, we could also consider working on a fixed fee for each stage of the case or a fixed fee for the entire case right up to the final hearing. This option provides clarity and certainty on the cost at each stage of the case and can help you decide whether it is worth bringing or defending the claim. It also allows you to financially manage your claim by knowing how much you are paying and what for right from the outset.
This is the most suitable option for simple applications or straightforward cases we can accurately estimate the time and complexity involved in your case.
This may not be suitable in complexed litigation cases or cases with a lot of documentary evidence and witnesses where it is difficult to estimate the time that would be spent on the work or what other issues may arise during the course of the case.
Please be aware that if a fixed fee is agreed, it will be determined based on the information and evidence provided by you at the time. If through the life of the case the nature or complexity of the case changes or new evidence comes to light then we would have to revise the fee agreed.
If you would like us to consider a fixed fee for your claim, please contact us and we would be happy to assist.
No Win No Fee
These are also known as Conditional Fee Agreements (CFA’s).
In such agreements you don’t have to pay any legal fees to run your case.
However, if you win the case, the full hourly rate is payable together with the agreed percentage success fee.
Such agreements are used in personal injury type claims.
Discounted Conditional Fee Agreements
This is similar to a ‘no win no fee’ agreement but with a twist.
You would pay a discounted hourly rate from the outset of the case.
- If you lose case, you will have only paid the discounted hourly rate fee for the work we have carried out.
- If you win the case, the full hourly rate is payable together with the agreed percentage success fee.
The percentage success fee will be based on the level of risk in your case. There will be a risk analysis undertaken by one of our experts so you will be fully advised how the discounted rate has been calculated based on the risks in your case.
Using this option, we share the risk of bringing or defending your case and do everything we can to help you win. This allows you to have a lower financial risk as to the costs throughout the life of the case.
It also allows you to decide whether you want to accept all the risks in bringing or defending the case at the outset.
If you would like to consider the discounted fee option, please contact us and we would be happy to consider this.
BTE Legal Expenses
Before the Event (BTE) insurance is a legal expenses insurance policy purchased in advance to cover legal if a dispute were to arise. This insurance is generally available with home, motor or business insurance.
It is always worth checking whether insurance policies that you already have include legal expenses cover and whether your type of case falls within the protection available.
If your case is covered by an existing insurance policy, you can make a request to your insurers to nominate Monarch Solicitors to deal with your case rather than the insurers panel solicitors who may not be specialised in your type of dispute or who may conflicted as they have to maintain the insurers best interest.
If you are unsure about whether your BTE insurance covers your claim, please contact us and we will be happy to assist.
ATE Legal Expenses Insurance
After the Event (ATE) insurance can be obtained if you do not have any BTE insurance already in place. This is an insurance policy taken out after a dispute or claim has arisen to cover the legal costs that you may have to pay if you are unsuccessful in the case.
The insurers are likely to want an opinion from a barrister before they will agree to cover your legal costs.
You would have to pay the insurance premium upfront as is normal with any insurance policy. The insurance premium would not usually be recoverable from the other side even if you win the case. We would obtain quotes for the insurance policy on your behalf for your case and ensure that all legal costs of the other party that you may have to pay will be covered.
This option allows you peace of mind and financial certainty that you will not be left with a bill of costs from the other side if you do not win the case.
Some ATE insurance policies also cover your own legal costs if you are unsuccessful in the case. This would mean that you will not have to pay any legal costs in the case, just the insurance premium.
If you would like to discuss the availability of ATE insurance for your claim, please get in touch.
Third Party Funding Options
Litigation funding may sometimes be provided by a third-party funder who does not have any interest in the case. They usually only provide the finances for the litigation and do not usually get involved with how the case is run or make decisions for you during the case.
This is usually a professional funder who will have their own Solicitor to decide whether or not to fund the case based on the risks and costs involved. In return for funding the case, they usually ask for a percentage of the damages awarded if you win the case.
This is a good option for cases of high value where a damages or money outcome is sought. It allows you to bring the case without having to pay the legal costs upfront yourself and with the certainty that if you are unsuccessful in the claim, you will not have to pay the other sides costs.
The availability of litigation funding is determined on a case by case basis and depends on the private funder agreeing to fund your case.
Contact Our Litigation Solicitors
If you any enquiries regarding litigation funding options please complete our online contact form here or send an email to us at [email protected] and one of our litigation solicitors shall call you back.
Alternatively, please call our litigation solicitors on 0330 127 8888 for a no obligation discussion.
Call us for a free initial consultation
Sometimes referred to as third-party litigation funding or legal financing, litigation finance is an agreement between two parties, one of whom is involved in a legal dispute. The funder agrees to cover the cost of a claim in exchange for a share of the damages.
The role of a litigation funder is to fund a worthy legal case and provide visible confidence. With the industry in its infancy, there is some nervousness within the legal community about funders coming in and making sweeping changes to the claimant’s representation or strategy. In our experience, doing so is counterproductive.
It is useful to keep the circle of stakeholders small when embarking on a litigation claim, as this makes information easier to share. Those whose daily jobs are affected by the claim should be represented, along with your finance and legal teams. In some cases, oversight from senior management could also help.
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