07 Aug The Rise of Litigation Funding
If you’re concerned that you may not have the capital required to fight a court case, there’s no need to worry. This does not have to be the end of the road for your pursuit of justice. In recent years, more and more claimants have turned to litigation funding to assist them with the costs inherent in their case, and you could too. So what exactly is litigation funding, and how would a person go about obtaining it? Read on to find out a little more from the specialists at Prosperity Insurance Brokers about this growing industry, and discover how it could help protect you as you pursue your case.
Litigation funding is the process of obtaining financial support to pursue a legal case. A third party, known as a litigation funder, provides some or all of the financing required to cover the costs involved, and, should the claimant’s case prove successful, the proceeds of the claim are split in a way that has been arranged at the time funding was first agreed. Should the claimant lose the case, the funder cannot reclaim the amount they have invested in the case and the claimant is not liable for any further amount payable to the funder.
The funder can also be repaid by way of a set amount agreed when the claimant first enters into a contract with them instead of an amount of the damages, or their fee can be taken from a combination of the two.
Why Might I Need Litigation Funding?
If you are likely to begin pursuing a commercial case in the near future – particularly one that will prove particularly high value – and you are either unable to meet the required costs involved or do not wish to tie up such a large proportion of your funds but feel that pursuing the claim is worthwhile in terms of morality or status, then you should certainly consider applying for litigation funding.
At present, if you are pursuing a personal injury claim, a consumer case or a case of lower value, you won’t be able to utilise litigation funding. However, considering its growing popularity, it’s highly likely that these types of cases will able to be funded in this way in the near future. If you’re unsure as to whether your individual case can be funded, simply ask your legal advisor today.
What are the Regulations?
Your litigation funder should not seek to exercise any form of control over the case in question and should have no direct interest therein. The roles of lawyers, funders and litigants must always remain separate to allow judgements, settlements and general court proceedings to remain impartial and unaffected. If you have any doubt about the activities of your litigation funder, you can refer to the Code of Conduct of the Association of Litigation Funders which practitioners must adhere to at all times. Litigation funders are regulated by their own independent body and are within their rights to accept cases that are more likely to succeed in court, as it is in their best interests.
How Can I Obtain Litigation Funding?
Legal advisors and solicitors are now expected to make their prospective and current clients aware of the option of litigation funding and to allow them to consider it when moving forward with a claim.
There are a number of bodies that now declare themselves to be litigation funders as a result of the practice’s growing popularity, so it’s important that you are able to discern which are genuine and credible and which are not. You should always check that the self-proclaimed litigation funder is a member of the ALF, or the Association of Litigation Funders – the body that regulates qualified providers. Members of this association must have instant access to funds and should not need to raise the amount from another source, so this is something you must ascertain when you first enter into discussions with them.
Prosperity Insurance Brokers offers litigation funding options which can be obtained alongside an After The Event Insurance policy, meaning that you will be safely covered throughout your case. If you’d like to find out more about the options available through Prosperity Insurance Brokers, or simply wish to learn more about our practice and the different policies we offer, simply call us today on 01481 254954 or email firstname.lastname@example.org and our comprehensively trained, highly qualified specialists will be able to speak to you about your requirements and offer you impartial advice to ensure that you and your assets are legally secure.