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Commercial Litgation High/Low Value Funding

commercial litigation funding

Commercial Litigation Funding High Value Claims

Sparkle Capital is ideally suited for cases where there is a requirement for commercial litigation funding in excess of £200,000 and where the expectation of damages is likely to exceed £1,000,000.

It is a general requirement that the solicitor is working on at least a partial conditional fee agreement however we will consider other cases on their merits (e.g. primary liability admitted, quantum disputed) and there is no upper limit on the amount that can be funded.

The commercial litigation funding can be used to fund disbursements including expert’s reports, counsel’s fees, issue fees etc. and solicitors own costs. This funding can be applied retrospectively to costs already incurred.

It is a requirement that an ATE policy is taken out with Acasta as this will also extend to cover the loan repayment in the event that case is lost as well the adverse costs. Effectively this makes the loan non-recourse which enables an impecunious claimant free to pursue their action or a more solvent claimant take the litigation risk “off balance sheet”.

Application Process

This process has been designed to be as straightforward as possible.

Step 1 – Submit an application form to Acasta via our online facility at casereview@acastainsurance.gi which will enable us to consider the merits of the case. This should be accompanied by a note of what amount of funding is being sought to prosecute the case.

Step 2 – Normally within 3 working days we will respond with an “in principle” as to whether or not the case is suitable.

Step 3 – If the case is acceptable our underwriters will then liaise with the solicitor to gather any further information or undertake any due diligence that is required and confirm the amount of funding required. It should be noted that our underwriters are qualified solicitors and as such are fully aware of the Law and the nuances of client relationship.

Step 4 – Once accepted our underwriters will prepare all the necessary paperwork and issue the ATE policy and agree the drawdown of the funds. It should be noted that the amount drawn down can be all or any of the agreed fund dependent upon requirements and that interest is only payable on the actual

We have made the cost as simple and transparent as possible. If the claim succeeds interest is charged at 1% per month on the commercial litigation funding utilised and then a further payment equal to 20% of the damages received, after repayment of the principal and interest.

commercial litigation funding

Commercial Litigation Funding Lower Value Claims

Here at Acasta we recognise that there are many deserving cases that are not pursued for smaller claims where the damages are less that £1,000,000 and where the commercial litigation funding requirement is less than £200,000. In fact recent changes in court fees have meant that many cases “go begging” for the sake of as little as £10,000 and it is these cases that we have created Sparkle Capital Lite to support.

Whilst the application process is the same the cost of commercial litigation funding is more proportionate and there is no requirement to enter into a CFA or DBA with the Client. Sparkle Capital Lite can be utilised retrospectively in exactly the same way as Sparkle Capital for disbursements and own solicitors costs however the amount that can be drawn down for own costs is limited to recoverable costs and disbursements.

As with Sparkle Capital there is no repayment of the funding if the claim is lost, as the loan repayment is covered within the indemnity provided by the ATE policy also the ATE premium is deferred until conclusion and is also self-insured.

The Sparkle Capital Lite facility does not take or require the payment of any percentage of the damages recovered. The cost for Sparkle Capital Lite is based simply on the amount funded and for how long it is outstanding.

For Further details please contact us on the contact form below or click here to contact a business development manager specifically

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