The UK’s legal system is arguably one of the world’s fairest and most revered, and litigation is an important part of this. It allows a dispute to be brought about, maybe by a business or an individual, to allow them to pursue either compensation or another form of justice against another party, if they feel something has not been handled fairly and according to the law.
High costs
As with any court proceedings, litigation can be very expensive, and the costs might appear off-putting to would-be claimants. Of course, it would be wholly unfair if litigation claims were only available to the financially stable. Litigation funding allows anyone to apply for third party funding to cover legal costs. The third party will receive a pre-agreed portion of any compensation given if the claim is settled successfully, according to the Association of Litigation Funders.
The funding process
There are different ways of requesting litigation funding from a funding body. The first step is to contact a specialist team, such as https://www.novo-modo, who can offer you tailored advice on your potential claim and assist you in the process of obtaining third party funding. It may be that you are advised to apply for commercial litigation funding – this simply means that a private business or a trade union will cover the associated fees, with the agreement that they obtain a return later on, once the case is settled.
It is also possible that you are advised to obtain a type of insurance called ‘after the event’ or ‘before the event’. Both of these insurance policies cover the costs of pursuing a litigation claim. Alternatively, you may well have heard of a no-win, no fee agreement: this is properly known as a CFA, or conditional fee agreement. On this basis, you would only be liable for costs if successful. Which type of funding is best will be down to the specifics of the case: a legal expert can advise on your case and the most suitable funding options for you.
