Answers to common questions about third-party funding of legal claims.
Who controls my case?
Your lawyers will continue to run your case and you will make all the strategic and tactical decisions as you would if your case was being financed by a third party. The only difference is that the funding is provided by a third party, and not by you or your lawyers.
What happens if I lose?
As with any form of Third-Party Funding, typically your liability to repay the funder is extinguished where the claim fails. The primary risk in Litigation Funding is transferred from you to the funder in return for a share of the claim proceeds.
Is the arrangement confidential?
Generally yes although opponents may be aware that funding has been provided, particularly in proceedings where disclosure of funding is ordered by the court. However, terms of agreement with the funder will generally remain confidential.
How does the funder make money?
This will depend on the terms of the funding agreement but typically the funder’s return will be a percentage of the damages recovered by the claimant.
What kinds of claims do funders consider?
More on Litigation Funding can be found at www.novo-modo.co.uk/litigation-funding.
As with any part of the financial services market, understanding how a litigation finance company is regulated in the UK before committing to an agreement is sensible.