Five ways to fund litigation
As you might expect, pursuing a litigation claim can be quite an expensive business.
Fortunately, there are ways to mitigate and manage the financial risk of litigation. Seeking out professional advice from experts such as Novo Modo allows you to receive tailored advice every step of the way, including advice on how to obtain litigation funding. Let us have a look at five ways you can fund litigation.
Self-funding
This is often the preferred method of funding for many. Paying experts by the hour can be a good option if they are able to predict within reason how many hours work will be involved. Indeed, with simpler cases, solicitors can devise a fixed fee.
No win, no fee
Simply put, you only pay for the service if the case goes in your favour.
Third party funding
Third party funding may be appropriate in high value cases where the chances of success are high. One option is a commercial funder who would cover costs and expect a portion of the settlement upon completion. Another possibility is a trade union – if you have membership, check whether they would cover your legal fees.
Conditional Fee Agreements
Conditional Fee Agreements, often better known as ‘no win, no fee’ agreements, mean you won’t have to pay if your case is unsuccessful, mitigating the risk of bringing any litigation claim.
Insurance
After the Event insurance is an insurance only taken out after a litigation claim. According to Box Legal, it can be purchased and used by either the defendant or the claimant in the event of a litigation case. Conversely, Before the Event Insurance, also known as Legal Expense Insurance or LEI, may be something your business already has and may cover legal costs.
If you are considering claiming a litigation case, it’s wise to get advice from the outset on both your case and the funding options.
