Many people find themselves in a situation where they have a valid case for indemnity or compensation, in accordance with Commercial Agents Regulations, but are unable to pursue the claim due to financial constraints. Other people, who can afford the legal fees, feel more comfortable sharing the risk with a third party. Solicitors funding is the ideal solution for these types of people.
In a solicitors funding agreement, one party pays for a claimant’s legal fees (or a percentage of these fees) in return for some of the indemnity or compensation the claimant is awarded in court (assuming a successful outcome), or via an out of court settlement. Obviously, for many claimants, it is better to get some compensation, even if it means they have to share part of it. Those who have the funds, but who do not like taking risks (or who want to spend their money elsewhere), are often attracted to this sort of arrangement too, because it reduces their liability considerably – while still offering the chance of a payout.
In 2011, the ALF (Association of Litigation Funders) was formed. This is the regulatory institution in charge of solicitors funding in the UK. In 2013, Damages Based Agreements Regulations were introduced in the UK, which set out how DBAs (Damages Based Agreements) can be used in litigation. A DBA is a contract between a solicitor and his or her client, whereby the solicitor agrees to request payment, only in the event of a successful case outcome. In such a scenario, the solicitor is paid a specified percentage of the client’s compensation money. Before April 2013, DBAs were only permitted for employment claims.
To get solicitors funding, your claim should have a reasonable likelihood of success, and the defendant in your case must be able to pay the compensation money. For this reason, government departments and big corporations are ideal defendants. Usually, the value of your claim should be at least a hundred thousand pounds. In the event of an unsuccessful claim, the funding party loses its’ investment and the claimant is not liable for any further fees (unless the claimant had breached the funding agreement in any way).
Contact Claim Finance today to get litigation funding for your clinical negligence claim. Our team has years of experience in personal injury litigation and personal injury claim finance. Better still, we are not a broker and work as a principal lender.