As a consequence of the Covid-19 crisis, we expect a rise in disputes regarding supply and service contacts. However, due to the limited cash flow, a lot of firms will not be able to afford the litigation. The solution to this can be litigation funding.
The recent case of ChapelGate Credit Opportunity Master Fund Limited v Money and others showed that fewer professional funders are prepared to fund the full dispute.
Previously, professional funding could assist smaller businesses with distinct but often expensive immediate costs, such as expert witnesses.
However, in recent years, we have seen the emergence of tech start-ups in the litigation funding industry. These start-ups use special algorithms to evaluate risks.
What should I take into account when considering professional litigation funding?
1. Tailored solution
Many professional funders will offer funding solutions based on their own set of rigid criteria, often driven by lawyers they instruct to protect them. As every dispute is different, you need to carefully consider all the options of funding available to you.
As litigation funding is not regulated by a governmental body, there is little protection for small businesses. Therefore, you should ensure that the contract is correctly written and affords you sufficient protection.
3. Legal advice
Legal professionals are obliged to advise and act in the best interests of their client. This includes making them aware of alternative ways of financing their dispute. A law firm cannot promote one funder over another but can detail the options available for the client to decide which may be suitable for your business.
Why you need flexible and creative litigation lawyers
You should ensure that the litigation lawyers are open to new creative solutions and take a flexible approach in order to succeed in your litigation case and funding.
Contact us for a solution:
020 7822 8535