What is Litigation Funding and how does it benefit claimants?
Countless genuine legal grievances go unheard each year because individuals and businesses can’t face the financial implications of taking action.
Not surprisingly, people hesitate to commit themselves to lawsuits not just because of the legal fees they face, but also the time they may need to invest.
Additional expenses may also be incurred, including lost income, the money spent preparing your case and, if applicable, the cost of getting independent medical assessments.
In England and Wales, around 1.4m petitions and civil actions are lodged each year, but most of them don’t actually result in a court hearing. The majority of cases are settled by negotiation and arbitration, largely due to fears about meeting costs. Not having the financial security to run a claim through to completion will usually have a negative impact on the compensation levels that a claimant is likely to receive.
Financial support for legal action
If you feel that you have a genuine legal grievance, but the thought of funding it makes it seem impossible, then you can get all or part of the money you need from litigation funding.
Litigation funding is designed to strengthen a claim by providing the financial resources required to build a strong case with specialist handlers. It’s a potential solution for individuals and companies of all sizes, to help them fight a wide range of types of legal cases.
It is recognised and permitted under statute, case law and public policy in the UK.
Who are Litigation Funders?
Litigation Funders are independent organisations. They are not involved in the legal case at all, they simply invest in your claim. In fact, The Code of Conduct of the Association of Litigation Funders makes it clear that in the interests of justice, funders, solicitors and the person taking the action must all have separate roles. At Claims Funding we provide the financial resources designed to strengthen a case and to assist our clients during the claims process.
Why would they support your case?
Litigation funders assess cases and back those that are likely to have a positive result. Their investment is returned to them when the case concludes and you have your financial settlement. There may be interest on the money they invested in your case, or they take a portion of your settlement. Either way, this will be agreed beforehand.
It is important to emphasise that this litigation funding doesn’t cost you anything if the legal action is unsuccessful. It is commonly known as “no win, no fee”.
What does Litigation Funding cover?
Primarily, it enables you to engage the services of an appropriate legal representative and pay court costs. It could also cover all or part of other costs, such as professional reports, investigations and consultations. The most common of these is medical examinations and reports.
Also, you may have day-to-day expenses from fighting your claim, or the case may leave you unable to work. Litigation funding could include help with living expenses.
What else makes Litigation Funding beneficial?
Taking legal action can be a stressful and worrying time, but with litigation funding, a huge amount of weight is lifted off your shoulders, leaving you to prepare for and action your case without financial distractions.
Backed by the third party funder, the legal fees, medical expenses and living expenses are covered. The litigation funder is prepared to back your claim, as in their professional opinion your case has a good chance of success. That alone gives you the confidence to go ahead.
Whether you require legal, medical, rehabilitation, personal and/or funding for your living expenses during the claims process, call us today to discuss litigation funding for your case.