Litigation Funding
We use our expertise and creativity to offer innovative solutions to funding the cost of litigation problems, minimising and in some cases completely removing the risk and cost to you of pursuing your claim.
Good claims are assets. However, the cost of pursuing a claim and the risk of losing and having to pay your opponent’s fees can be off putting. Our team of over 40 lawyers have experience of assessing, running and winning claims where part or all of the costs are only paid if the outcome is successful.
Unlocking your claim.
We have over 12 years of experience of working with litigation funders and insurers. They trust our judgement in assessing claims suitable for funding, which enables us to secure competitive terms quickly. We advise funders and other professionals on the regulatory aspects of litigation funding and how to structure funding, insurance, contingent fee agreements and claims management agreements.
We also have in-depth knowledge of the after-the-event insurance market, an insurance product that covers the financial risk of losing the claim and having to pay an opponent’s legal costs. Through years of working with insurers we know what they’re looking for and how to secure insurance that covers all eventualities.
Where we believe in your claim we will act under a contingent fee arrangement whereby all or part of our fees are at risk and only payable if your claim is successful.
How Does Litigation Funding Work?
Litigation funding involves a party unconnected to a claim (such as a hedge fund) financing all or part of the costs of pursuing your claim in return for a payment if your claim is successful. The amount to be paid to a litigation funder if the outcome is successful is agreed at the outset and varies depending on the type of claim, the choice of funder and their risk analysis, as well as our assessment of the claim.
A ‘funding package’ will usually consist of:
- A contingent fee arrangement with us, whereby we agree that part of our fees will be at risk and only payable on success in your claim.
- A funding agreement with a third-party financier who agrees to pay all or some of the costs of your claim (i.e. part of our fees, court fees, expert’s fees etc) in return for a payment if your claim is successful.
- An insurance policy or an indemnity to cover the risk of having to pay your opponent’s costs if your claim is unsuccessful.
- Where there are a group of claimants, a claims management agreement setting out how the claim is to be conducted on behalf of all within the group.
We take a flexible approach to finding a funding solution that works for you. Not all claims will have all of the above elements and the terms of each of the arrangements will vary to suit your needs.
Meet the team
Our teams are specialists in their fields, providing commercially driven, clear advice that helps you stay compliant and confident you’re doing the right thing.
Hear from Craig Hollingworth
Discover how our team supported and secured litigation funding for Red Squirrel.
Red Squirrel’s CEO, Craig Hollingworth, approached Capital Law to act on its behalf in a claim for unpaid commission, replacing its previously instructed firm of solicitors.
