Third party funding is when a third party (who is not a party to the dispute) agrees to finance your disbursements and/or legal costs in return for a fee. The fee is usually a percentage of any monies you recover.
If you are successful, you pay the third-party funder from the funds you obtain. This is not a loan, if litigation is lost a third-party funder will lose their investment and no sums will be repayable.
Third party funders usually require After the Event insurance to be taken out in conjunction with their funding agreement. If you are unsuccessful, there will not be anything to pay to the third-party funder and the After the Event insurance will normally cover the opponent’s costs and your own disbursements.
In assessing any potential investment in litigation a third-party funder will have regard to the value of any claim, the prospects of the claim resulting in a successful outcome and the prospects of recovering any monies awarded as a result of the litigation. There are several third-party funders available on the market and we can assist you in making enquiries in this regard.