We have a range of funding options available, meaning that our clients can go with the option that best suits them and their particular circumstances.
What commercial litigation funding options are available?
Pay as you go
In this classic fee model, clients cover fees and expenses as the case progresses. Typically, fee budgets are set and agreed at each stage of the case so that clients have full visibility of anticipated and ongoing costs, allowing them to plan accordingly.
Success fee agreements
Success fee arrangements involve not charging clients any fees during a case. Instead, if our client is successful, then they pay us an agreed percentage of any financial recovery that is made. That percentage is agreed at the beginning of the case which means that our client is clear about fees from the outset.
Clients also have the option to take out insurance to cover the risk of an adverse costs award and to cover any money that we need to pay out on their behalf, such as for counsels' fees or court dues. Under this option, we share the risk of litigation with our clients. If we don't win the case or succeed in getting a financial settlement for our clients, we don't get paid. It is that simple.
Click here to find out more out success fee arrangements.
Third party funding
This is where a litigation funding provider would pay for our client's legal fees and disbursements in return for a share of any money recovered. We have relationships with multiple funders and are not tied to particular providers.
After the event (ATE) insurance
ATE insurance traditionally covers against adverse costs orders, meaning that our clients would not need to pay the other side's legal costs if they lost the case. It can also cover disbursements and, more recently, parts of solicitors' fees. ATE insurance may also sit alongside other funding options, such as a success fee agreement.
A premium is paid for the insurance cover, and can be arranged so that the premium is only payable in the event of a successful financial outcome and is deferred at the end of the case, so nothing is paid up front.
Next steps
In summary, we don't follow a 'one size fits all' approach when it comes to the funding of commercial litigation. We work with our clients to find the option that best suits them. Please get in touch with a member of our litigation and dispute resolution team to discuss your options.
