Litigation funding options
Litigation can be expensive. You may not have the means to pursue a claim or you may prefer not to lock-up funds in legal fees. Litigation funding can assist.
How our litigation funding service can help you.
Royds Withy King offers a variety of options to fund litigation and has relationship with leading litigation funders to offer a third party funding option tailored to our practice areas and sectors - both in the UK and internationally.
These can be used individually or in combination with each other, alongside after the event (ATE) insurance, to unlock litigation and spread risk.
Not every option will be suitable every client’s needs or every type of case, but Royds Withy King will work with you to advise on the best option for you so that you can make a fully informed decision about how to proceed. We offer the following funding options:
A conditional fee agreement is an agreement by which a solicitor is only paid in full upon the successful resolution of a case – typically known as a “no win, no fee” arrangement. In this arrangement payment of legal fees is deferred until the successful outcome of a claim at which point solicitors are entitled to their fees being paid in full together with a success fee.
Less well known is a discounted conditional fee agreement, whereby you pay reduced fees during the course of litigation, but if litigation is successful the full fees are due together with a success fee (albeit smaller than for a full CFA).
In both cases a client would expect to recover a significant portion of legal fees from the other side but cannot recover the success fee (save for limited exceptions), which is typically paid out of any damages recovered.
A damages based agreement is a form of conditional fee agreement by which a solicitor is paid a sum calculated by reference to the total recovery made in the matter (i.e. a percentage of the total of both the damages and costs recovered).
DBAs are subject to a maximum cap of 50% of the total recovered.
Third party funding is where a third-party, who is not involved in the litigation, funds the dispute in consideration for an uplift on the sum invested if the claim is successful. Third party funding options operate on a conditional basis so that if the claim is not successful, nothing is owed to the funder. They are often entered into in conjunction with a discounted CFA, with the funder paying both disbursements and the solicitor’s discounted rates.
Royds Withy King have relationships with leading UK litigation funders. Funders will grant funding on a case-by-case basis having assessed both merits and recoverability.
This is not strictly a funding option, rather an insurance policy so that in the event litigation is unsuccessful and you are ordered to pay the other party’s legal costs, this is covered by insurance.
The insurance premium can be paid up-front, staged or be fully contingent on the successful outcome of a case. A fully contingent premium means you pay nothing if the claim is unsuccessful, but if it is successful you pay a much larger premium. ATE policies are used alongside other funding options to minimise the risk of litigation.
Every case and every client’s position is different. We will work closely with you, and with funders, to make sure that the best and most appropriate options are offered to you, allowing you either to unlock litigation or avoid having resources tied-up in legal costs.