Why should I use litigation finance?
Litigation finance allows individuals and companies to finance claims that they otherwise might not have been able to make. Because payment is usually not required until after the case has been won, either on a ‘no win, no fee’ basis or as a proportion of the win, there’s less financial risk in making a claim. But why should you use litigation finance to make your claim?
David and Goliath
One of the most obvious reasons you might use litigation funding is that they simply can’t afford to do it on their own. If you’re an individual taking on a large company – a former employer perhaps – you might not fancy laying your own money on the line to take them to court. With litigation funding there’s no need to gamble your own money, a lot of the risk is taken out.
It’s likely that a big company will have deep – or even seemingly bottomless – pockets, and will be able to afford to pay very expensive lawyers. Taking on a large entity takes a lot of financial support, the kind that an individual or small company might not be able to afford, or might not want to risk. Litigation funding means that you wouldn’t be out of pocket or risking your life savings to make a claim.
You’re financially ruined because of your claim
If there’s been a big fallout in your company or business you might no longer be able to afford to take the entity responsible to court. If you’ve lost a lot of money, or even become financially ruined by another company, you might struggle to take them to court and make your claim. However, with litigation funding there’s no upfront cost to your claim. The cost of your legal fee, solicitor’s fee and even your living expensive could be covered by the litigation funding, meaning you can take the company responsible for your losses to court.
Long-running disputes can lead to financial ruin. For example, a small business might be an issue getting paid by a large client, without litigation funding a small cash-starved company wouldn’t be able to fund a claim.
Spend your money elsewhere
It could be that you have the money to fund your own claim, but it might make sense for you to save it.
It could be that you have the money to fund your own claim, but it might make sense for you to save it.
You might choose to keep your capital for other uses in your business. It might make sense, why spend your business’ money when you could get a funder to back it, and pursue it for free?
Not many claims actually reach the courtroom. However, getting a favourable settlement beforehand is often dependent upon convincing your rival that you have a strong case. Beyond just a strong case you also need to convince them that you have the financial clout to see it through.
Showing your opponent that your claim is so strong that a third-party financier is willing to back you definitely sends a powerful message.
Hunting as a pack
If you have a smaller claim to settle it can be really hard to find funding. Generally funders won’t take claims that have a potential win of less than £5million. But there is a way to get smaller claims to court. If you can find several other people who have the same, or similar, claims against the same opponent, you’re more likely to be able to persuade a court that they should all be managed together. While the court would refer to it as a Group Litigation Order, it’s commonly known as a ‘class action’.
For example if you had 80 or even 100 individuals, who were all victims of mis-selling from a financial advisor, a lawyer could join the claims together, and bring them to court as one.
‘Class action’ is almost like a form of crowdfunding, giving you the chance to bring a claim – on an equal footing to your opponent – whereas alone you might not have been able to.
Where can I find out more?
Kramer Sullivan specialise in litigation finance, helping you receive between £1,000 to £1 billion to finance your claim. Use our website to provide some details about your case and the Kramer Sullivan team will review your claim in more detail and put you in touch with the litigation finance company who is most likely to approve your claim up to £1 billion.
Alternatively, please give us a call on 020 8088 0665 to find out more. Alternatively, e-mail us with your enquiry on contact@kramersullivan.com.
