Pursuing a legal claim can be expensive, but litigation funding can help. Whether you’re an individual, business, or part of a group claim, there are ways to fund your case without shouldering all the costs upfront. Below are five common litigation funding options available in the UK.
Private Funding
Private funding is the most straightforward option, where you pay your legal fees directly. This method gives you full control over how the case is handled, with no third-party involvement in decisions or settlements. Costs can be agreed as hourly rates, fixed fees for specific stages, or monthly payments. Citizens Advice offers help with how to control costs if privately funding a legal case.
Third-Party Litigation Funding
With third-party litigation funding, an independent company like https://www.novo-modo.co.uk/litigation-funding covers your legal costs in exchange for a share of any compensation if you win. It’s often used in high-value cases or complex commercial disputes. These funders assess your claim before agreeing to support it, taking on the financial risk if you lose.
After the Event Insurance
After the Event, ATE, insurance is taken out once a legal dispute has already started. It protects you if the case doesn’t go in your favour by covering the other side’s legal costs. Some policies also include your own disbursements, such as court fees and expert reports.
Before the Event Insurance
Before the Event, BTE, insurance is a type of legal expenses cover arranged before any dispute arises. It’s often included in home, motor, or business insurance policies without people realising. If you already have this cover, it could pay for legal costs linked to your case and reduce the need for other funding routes.
No-Win, No-Fee Agreements
No-win, no-fee arrangements mean you only pay your solicitor if your case succeeds. The two main types are Conditional Fee Agreements, CFAs, where a success fee is added to the usual costs, and Damages-Based Agreements, DBAs, where the solicitor takes a percentage of any compensation won.
Choosing the right funding model depends on your situation, risk tolerance, and the strength of your case.
