Litigation funders selectively back cases. So before you approach a funder for your case, it’s worth first understanding what they are looking for.
Strength of Your Claim
They will assess the merits of your claim, possibly commissioning their own review of your case before committing to funding. As already stated, a claim with clear legal grounds, sufficient evidence to support your claim and a strong chance of succeeding at trial is likely to be fundable. It would be helpful to have a barrister’s opinion on the merits of your claim.
Minimum Financial Value
The minimum financial value of a claim that will be considered for funding by a funder varies. Typically however a funder will look to fund a claim of a minimum value of £250,000 to £500,000. Below this value other forms of third party funding may be more appropriate (see above).
The Defendant’s Ability to Pay
Enforcement is key to a successful claim. The ability of the defendant to pay a Judgment Debt is crucial. Funds look at the assets of the defendant, as well as any relevant insurance that the defendant may hold. A claim against an insolvent or asset-less opponent is extremely difficult to get funded.
Type of Case
Litigation funding is mostly provided for commercial disputes, group actions and cases involving insolvency. Intellectual property, professional negligence and breaches of contract are also provided for on a regular basis.
Your Own Financial Position
Funders generally are more willing to finance a claimant who does not have the funds to pursue a claim through the courts, as opposed to a very large, very well funded company, which may be looked at by funders to finance claims of very large sums, or of a very complex nature.
Stage of the Case
This can be a really late stage for a case to look for funding. Funding of a case already close to trial is unusual and will inevitably restrict the funder’s ability to structure their involvement in the claim in the best possible way. If you want UK Litigation Funding, https://www.novo-modo.co.uk/litigation-funding is a good place to start.
Assessing your circumstances before approaching a potential funder should give you an indication of where you stand with your potential case.
