What is the purpose of obtaining litigation funding?
Litigation funding is the term used to describe the arrangement where a bank, hedge fund or insurance company invests in a claimant’s claim with a view to receiving a good return on its investment at the end of the case… Read More Put very simply, a litigation funder provides money upfront to pay a claimant’s own ongoing legal costs and disbursements of bringing a claim, such as the solicitor’s costs, Counsel’s fees, the expert’s charge, court fees etc. In return, if the claimant is ultimately successful in his claim, the funder will be entitled to receive from the claimant a cut of the winnings or damages that are awarded against, or recovered from, the losing defendant. The funder’s share is usually a percentage agreed in advance of between 20% and 30% of the monies received from the defendant. Alternatively a funder sometimes agrees upfront with the claimant to receive from the claimant a multiple of the funds it advances in the event that the claim is successful. The multiple is us
