If you’re heading towards litigation and considering litigation funding, you’ll want to be thoroughly prepared for the process. Our FAQs will help you to understand the ins and outs of litigation funding and determine whether it’s the right option for you and your case.
What is litigation funding?
Litigation funding is essentially financial support provided by a third-party company, such as //www.novo-modo.co.uk/litigation-funding. This will cover the legal costs of bringing or defending your claim, and usually the funder will take an agreed share of any compensation.
How does it work?
You’ll go through an approval process first, and then the funder will pay for your legal fees. If you win, they’ll receive a share of your settlement – but if you lose, usually you won’t have to repay the finance, as the funder takes the risk.
What types of cases can it cover?
Litigation funding is usually available for civil claims. These could be things like professional negligence claims, inheritance disputes or commercial disputes.
Who can apply?
Individuals, companies or law firms can all apply if their case has a decent prospect of success.
Will I need a solicitor?
You should speak with a solicitor first to obtain legal advice – that’s because funders will want to see initial case assessments.
When should I approach a funder?
As soon as possible, since funders will need enough time to make a full assessment of your matter – so don’t wait until too close to trial.
What do I provide?
You’ll ideally provide a case summary, estimated damages, key documents, legal opinions on your prospects and an outline of the costs.
What if I lose?
You won’t repay the funder if you lose, as this is the risk they take on.
Will I lose control of my case?
No, you won’t – the control of the case will stay with you and your legal team.
What are the costs?
If you’re successful, the funder will take a share of your damages, which is usually a percentage. If you fail, you’ll likely owe nothing.