This post discusses third-party funding, a form of finance which allows someone to fund your legal costs in return for a share of any award which is made against your opponent.
Commercial Contract Disputes
Commercial Contract Disputes are the most commonly funded cases. For these types of disputes funders look for a clear breach of contract, a solvent defendant and a claim of a value of at least £250,000 to £500,000 (or sometimes even more depending on the alleged loss). However, the more evidence available to prove the breach of contract and the resulting loss, the better the case will be to fund. Strong documentary evidence of the contract and the resulting loss will make a great case to fund.
Intellectual Property Claims
Patent, trade mark and copyright cases can be funded because of the potential for large damages awards. However, such cases can be expensive to litigate on a complexity basis. Therefore, the merits of the case will be scrutinized by potential funders and in many cases a specialist counsel’s opinion will be required to support an application for funding.
Insolvency and Asset Recovery
Liquidators and administrators can use third party funding to pursue claims against directors of a company in insolvency, to recover assets which have been misappropriated and which form part of the insolvent estate but which the estate does not have any money to pay for. Funders are drawn to such cases as they return a good sum of money from a successful claim. For more on Litigation Funding is https://www.novo-modo.co.uk/litigation-funding.
Group or Collective Actions
The use of third party funding in Group or Collective Actions has increased, and can be used in competition, consumer, and data claims, brought by multiple claimants. As there are different types of court and Tribunals in England and Wales, that deal with Collective Actions, it is essential to establish which court or Tribunal will deal with the case, as soon as possible, as there are different procedures in place for each.
By having an appreciation of the various disputes that are suitable for funding, it can assist in ensuring that an application for funding is provided in the best possible form.
