Funding

Question 1

Potential funding options

Answer 1

Private funding
Conditional fee arrangements
Damage based agreeents
After the event insurance
Before the event insurance
Legal aid
Third party funding

Question 2

What is a conditional fee arrangement?
Features?

Answer 2

No win no fee
Normal fee + success fee (% of normal fee)
Paid out of damages
Success fee cannot be recovered from opponent
Personal injury - cannot exceed 25% of damages not including future care

Question 3

What is a damaged based ageeement?
What are the features?

Answer 3

No win no fee
Proportion of damages awardee
Personal injury - capped at 25%
Employment - capped at 35%
Everything else - capped at 50%
Does not cover disbursements

Question 4

After the event insurance

Answer 4

Can cover disbursements and opponent’s costs
Used in conjunction with CFA or DBA
Cost of premium is not recoverable
Expensive

Question 5

Before the event insurance

Answer 5

Often comes with home/car insurance
Often has financial limit

Question 6

Civil legal aid

Answer 6

Means tested
Must be sufficiently meritorious
Covers children/family disputes, homelessness and domestic violence

Question 7

Third party funding

Answer 7

From banks/hedge funds etc
3P gets money back plus profit
Association of Litigation Funders - has a code of conduct
- promotions must be clear/ not misleading
- must not take control from solicitor or barrister