WHAT IS LITIGATION FUNDING?
LITIGATION FUNDING
Litigation Funding is now well established in Australia and provides a solution for client companies or individuals to fund a case that they may not have the means to fund, themselves.
On a regular basis you will see newspaper reports about many significant legal actions that have been underwritten by litigation funders.
Funders pay the costs to take an action to hearing and usually pay adverse costs if your case is unsuccessful.
ln return litigation funders seek a commercial percentage of the recovery sum from a settlement or court judgment in your favour. In the event that the claim does not succeed the funder commonly bears the total costs.
Funders look for a commercial return that reflects the risks taken.
HOW IT WORKS
In the first instance there needs to be an initial evaluation of your potential claim which is done by way of a well prepared legal brief of the action identifying the nature of the action, an assessment of damages and usually a barrister’s opinion of the merits of the case.
The preparation of a legal brief can be an expensive process and we know that many claimants don’t have the funds to even instruct a lawyer to present their case for funding determination.
We have the necessary experience to offer you a straight forward and timely assessment as to whether your case firstly has merit and secondly whether we would be willing to fund such an action.
Assuming that we decide to fund the case we negotiate a funding agreement up front that includes a funding commission which is determined based on the merits of the claim, the costs involved and the potential adverse costs in the event of a loss.