Finding out beforehand whether your dispute can be funded is much faster for both parties than going through the funding application process first.
Minimum Claim Value
Typically cases are looked at on a minimum Claim Value, which can range from £250,000 in damages that have been claimed to £500,000 plus for larger commercial disputes, where there are sufficient smaller disputes to create a larger fundable case.
Strength of Legal Merit
Funders will require independent confirmation that a case has reasonable prospects of success. In practice, the written opinion of a barrister or solicitor would be required at the outset. A weak or ‘hedged’ assessment of a case would likely mean that the application would be brought to a close quickly.
Recoverability of the Defendant’s Assets
Most importantly, the funded party must have a strong belief that the other side will have assets which can be traced and used to pay a judgment. In such cases the fact that the opposing party is insolvent or ‘asset light’ is of little consequence. However, a strong technical case against such a party would likely be a hard sell to any funder.
Court or Tribunal Eligibility
Lastly, funders often restrict their funding to cases proceeding in certain jurisdictions, or indeed in cases proceeding to certain levels of court. In England and Wales alone there are various types of civil courts and tribunals that hear various types of cases, and each funder will inform you as to whether or not your case is in the appropriate jurisdiction.
Case Type Restrictions
The most commonly funded case types are Commercial litigation, Professional negligence claims and Group actions (also known as Class actions). These are therefore the types of cases that are typically within the scope of a funder’s criteria for funding claims. This does not mean that Personal injury or Family matters will never be funded, but these are generally excluded from the criteria of the majority of funders.
Getting Legal Advice First
This means that applicants who have first obtained a lawyer’s advice will generally receive a better application for funding than if they had approached the funder directly. If you are looking for Litigation Funding London, see https://www.novo-modo.co.uk/litigation-funding-london.
However, satisfying these criteria does not guarantee funding. However, understanding them in advance will enable you to establish the likelihood of your case obtaining funding prior to commencing discussions with a potential funder.
