Funding is well established particularly in the United States and Australia and is becoming accepted in the English Courts as a characteristic of modern litigation. In recent years funding and CFAs have, therefore, been received by the English Courts as an acceptable means to bring and progress claims.
Funding is a useful tool to assist in obtaining access to justice and is now seen by the courts as a commercial agreement by which a claimant is prepared to forgo an element of its damages to successfully pursue a promising claim.
Litigation funding takes the risk of own side’s costs off the balance sheet therefore de-risking the costs of a company’s litigation which is a commercial decision few could argue with. Additionally, this method combined with an ATE policy also eliminates the risk of adverse costs. Funding therefore allows a business to approach litigation with the usual commercial constraints and concerns greatly reduced.
Litigation funding has historically been the preserve of claimants that have had high value claims who have qualified for a funder’s investment which is usually where costs are estimated to be in excess of £250,000.
For many claimants where costs are far lower the option of litigation funding has been off limits since the value of their claim and funding required to run the case simply isn’t high enough regardless of the prospects of the claim. The reality is that a claimant needs to demonstrate to a funder that it requires a relatively large sum of capital to run its case so that it can stimulate a funder’s interest. Furthermore, there is often a caveat that ATE insurance must be in place for any such funder to consider applications in the first instance.
Simple, transparent funding available for both high and low value claims
As well as offering facilities for higher value claims Acasta offers funding for lower cost claims on a contingent, non-recourse basis with easily explainable terms and with no hidden cost surprises. On many occasions, we are approached for funding that isn’t necessarily dependant on an ATE policy being in place.
Acasta’s approach is to understand each case and discuss with the solicitor the best way forward in assisting their clients; whether there is a requirement for ATE in isolation, ATE and Funding or even Funding in isolation we are always happy to consider each case on its merits, needs and requirements.
Acasta is well placed to offer alternative and feasible solutions to help progress litigation on the basis that the claim maintains its proportionality over quantum by offering an enviable and commercially viable entry level.
How much will it cost?
The question from many claimants is “how much will it cost?”. Currently, funding deals are often complex with the end cost to the claimant speculative as the variables are often dependent on a claims timeline and multiples of capital invested. This is where Acasta has created a simple funding model to be as transparent as possible.
Acasta’s variable terms afford potential and existing claimants the consideration of claim funding from £10,000 up to £1.5M with ATE or without.
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