Litigation Funding for Commercial Disputes
Commercial disputes are expensive to pursue even when there is a strong case. Businesses can now bring claims with the support of third party litigation funding and not have to pay for legal costs upfront.
Which Disputes Get Funded
The types of commercial claims which can be funded include: contract disputes; claims between shareholders or partners in a business; professional negligence claims; and fraud related claims. Funds are also provided to allow regulatory disputes to be pursued and, in some circumstances, disputes connected with an insolvency.
Minimum Claim Values
Claim values typically assessed for funding start from around £500,000 to £1m+ in claimed damages, such as to seek to recover in excess of that amount in any event. In such cases the funding provided is designed to assist substantial commercial claims rather than large numbers of smaller value consumer-type claims.
How Repayment Works
Repayment to Funders of Commercial Litigation is taken from the Award of Damages in a Claimant’s successful case and is usually a fixed percentage, for example 20% to 35% (such repayment is not payable if a Claimant’s Case is lost by them).
Negotiation and Settlement
This can give claimants in funded disputes a considerable advantage when it comes to negotiation and settlement. Your proposed settlement with the opposing party will need to be approved by your funder.
Your Obligations During the Case
In order to obtain a Litigation Funding Agreement claimants are expected to cooperate fully with both the lawyers instructed on the matter and the funding company. UK Litigation Funding is covered in more detail at https://www.novo-modo.co.uk/litigation-funding.
In addition to assessing the merits of a claim, funders also assess the strength of a party’s legal team. Therefore, having experienced solicitors on board from the outset is crucial.
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