What is Litigation Finance?
Litigation finance offers money to help you go to litigation and win your claim – usually for a large sum and against a big company or individual.
Very often, going to court for potentially large settlements can incur very high legal fees and a loss of income if it takes you away from your daily work. For many people, they may be turned off from taking on a big company simply because they do not have £1 million or similar to pay for litigation – but this is where litigation finance comes in.
There are a number of third party litigation funders, such as Kramer Sullivan, who see your claim as being valuable and they are willing to offer you litigation funding on a no-win, no fee basis.
The funds can help pay for any legal and expert fees and also your daily living costs. Essentially, it allows you to go to court with less financial risk and maximise your chances of winning – and you only need to give the financier a small stake if you win.
What Kind of Things Can I Use Litigation Finance for?
- Claims against a director
- Class actions
- Director disqualification
- Dispute resolution
- Debt claims
- Insolvency advice
- Shareholder disputes
- Slander and defamation
- Tax disputes
Do I Need Litigation Funding?
For many individuals and organisations, using litigation finance can be one of the most effective methods to finance a claim.
There is always the option to finance it yourself, but complex cases are prone to being overrun and this can lead to very high legal and court fees.
If there is strength in your claim and the potential settlement is significant, litigation funding can offer a low-risk and effective solution.
What Are the Fees Involved?
We offer litigation funding on a no win, no fee basis.
Kramer Sullivan offers the money upfront (or in stages) and agrees to take a percentage of the potential winnings.
If you require extra capital at some point during the case, the terms can always be reviewed and there are also ‘success fees’ or fees based on specific targets that can be negotiated too.
How Much Can I Borrow Towards My Case?
We can offer litigation funding ranging from £1,000 to £1 billion, depending on the strength and magnitude of the case. We review every case individually and have an expert team who have experience in litigation and can estimate the expected costs and provide funding according to this.
Am I Eligible for Litigation Finance?
Kramer Sullivan reviews every claim on a case-by-case basis and would like be delighted to hear more about your case and any progress that you have made so far.
We have experience in understanding what might be successful in court – so we can provide a realistic overview and expectations.
We are never quick to dismiss a claim and would always be happy to discuss further with you.
What Happens if I Lose My Case?
This is something that the litigation funder will consider before and they will have an understanding and acceptance of the risks associated with funding a large claim.
In the event that you lose your case, litigation insurance can still provide some kind of financial backup for any legal fees or solicitors that are hired on a damage-based free structure. It is common to include indemnity insurance in any litigation funding to cover any negligence by your legal team.