Fixed Interest Release Third Party Low value litigation funding for commercial cases
At Acasta we recognise that there are many deserving cases that are not pursued for smaller claims where the damages are less than £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 do not proceed as the issue fee alone can act as a bar to what is otherwise a meritorious claim. It is these cases that we have created Fixed Interest Release Funding (FIRF) to support.
Whilst the application process is the same, the cost of commercial litigation funding is more proportionate. FIRF can be utilised retrospectively in exactly the same way as 1&20 for disbursements and own solicitor’s costs.
As with 1&20 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. The ATE premium is deferred until the conclusion of the dispute and is also self-insured. If ATE insurance isn’t required, a Financial Guarantee Insurance policy can be incepted to cover the loan.
This process has been designed to be as straightforward as possible.
Step 1 – Submit a proposal form to Acasta at firstname.lastname@example.org which will enable us to consider the merits of the case. This should be accompanied by supporting documentation.
Step 2 – Normally within 3 working days we will respond with an “in principle” decision 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 relationships.
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 interest is only payable on the actual monies drawn down. The interest does not become payable until the conclusion of the case.