Litigation Funding Options

There are three ways in which you can work with a business litigation lawyer:

1. No-win, No-fee. Also known as a 'pure Conditional Fee Agreement' or 'pure CFA'. This is generally the most desirable for your business as the solicitor receives nothing if you lose. In these circumstances you can be sure that the solicitor is highly focussed on winning your case.

   A solicitor working on this basis will be reasonably satisfied that the litigation has good prospects of success. If the solicitor acts for you on this basis it is usually possible to purchase an insurance policy to protect the business against the costs of losing the case.

   Solicitors acting on a 'no-win, no-fee' basis are permitted to charge the losing side a success fee, which can be as much as 100% of the solicitors normal hourly rate. This is one of the main reasons why solicitors will run litigation cases on this basis.

2. No-win, Low-fee. Under these circumstances the solicitor charges a low hourly rate with a success fee in the event that they are successful. An insurance policy to protect against the costs of losing the case can be acquired.

3. Hourly Rate. This is the most common method. Under these circumstances the business is liable for the costs of the retained solicitor and indeed the costs of the defendant in the event that the case is lost. Hourly rates can sometimes be negotiated to reflect specific circumstances. It can be possible to purchase insurance to protect against the costs of losing.

How PowerLegal can minimise your costs - and your risks

Powerlegal has developed a panel of regionally located solicitor firms who are experienced in running litigation on a CFA (no-win, no-fee) basis. The solicitor firm needs to assess the litigation matter carefully before committing to a no-win, no-fee arrangement, but once this is in place and an appropriate insurance policy has been purchased, then the risk to the business can be minimal.

As part of our work, we can assist the solicitor in sourcing an appropriate ATE (After the Event) insurance policy to protect the business against the costs of losing the litigation case. These increasingly sophisticated insurance products have premiums which are only paid at the end of the case, either by the defendant as the losing party or waived by the insurer if the case is lost. Cover can be acquired for limits of indemnity of up to £2m and beyond for large actions.