Third Party Funding
Third Party Funding involves a third party who has no connection to the litigation agreeing to advance funds to finance the legal fees of the litigation in return for a percentage share of the damages where the claim is successful. Where the claim is unsuccessful no fee will be payable to the third party funder.
There are many different options available for Third Party Funding and a range of funds are available from different providers depending on the nature and quantum of the dispute. In some cases funding can be provided to cover legal fees and third party expenses and in some cases the funding can be staged depending upon the point in time at which the case concludes/settles.
For some clients funding is an excellent option to remove a drain on cash flow. For others the products are considered too expensive and After The Event Insurance/Discounted CFA are preferred. Third Party Funding can be used in combination with other funding options such as Conditional Fee Agreements, Discounted CFA and After The Event Insurance. It should be noted, that there are a number of cases proceeding through the Courts arguing that Third Party Funding is akin to champerty and maintenance and therefore close consideration is required as to the present position of the relevant case law prior to entering into any such agreements.
Where Third Party Funding is appropriate we work with a number of brokers to ensure that you have access to a full range of funding options to suit your cash flow and risk appetite and can work with you to ensure the Third Party Funding product and combination of funding options is right for you.
For more information contact the key contacts detailed here.