Funding Commercial Litigation and Disputes at Blake Morgan
If you are bringing a claim against an individual or company, Blake Morgan can offer you a number of different solutions for funding your litigation as an alternative to the traditional pay-as-you-go hourly rates.
Obtaining litigation funding from a third party can reduce your risk and expense of bringing a claim.
Alternatively, or in addition to, litigation funding, we are also able to offer “no-win no-fee” conditional fee agreements (CFA’s) for our fees in suitable cases. We also offer hybrid part-funded CFAs, where our clients pay a discounted hourly rate and the balance shall only be recoverable in the event of a win.
Main Areas Of Practice
We have significant experience of working with individuals and companies under Conditional Fee Agreements ("CFAs") and obtaining litigation funding for clients.
We have strong relationships with several litigation funders who we can approach on your behalf to obtain funding. Our main areas of practice are shareholder disputes, contractual disputes, professional negligence claims and insolvency claims.
Conditional Fee Agreements or "no-win no-fee agreements"
If your case is successful, you pay a success fee or uplift to our basic charges. If the case is unsuccessful and you have a 100% CFAs, you do not have to pay our fees. You'd still have to pay court fees, experts' and counsel's fees.
Third Party Litigation Funding
Funding from a third party "funder" pays third party costs upfront including court fees, expert fees, insurance cover and counsel's fees. It can also pay some or all of our fees if we agree a partial, say 50/50, CFA. Interest and a success fee is usually payable to the funder if your claim is successful. Litigation funding reduces or avoid the costs of paying upfront to bring a claim. It therefore transfers some or all of your risk in bringing a claim and reduces monthly cash flow demands.
You should always check your insurance policy to find out if you already have insurance in place to cover legal fees. After the Event Insurance is also available after the dispute arises. It protects against your liability to pay your opponent's legal costs if your claim is unsuccessful. As panel members for various insurer clients, we may be able to act for you under any legal expenses insurance policy.
We have helped a wide variety of clients obtain litigation funding: our clients include individuals, professionals, SME’s and large corporates based both in the UK and abroad.
Shareholder Disputes – Acting for a director/minority shareholder to bring a claim for unfair prejudice as a result of being wrongfully excluded from management. We and counsel acted on a partial CFA funded by litigation funding and we obtained a favourable settlement within five months.
Insolvency Claims – Acting for a trustee in bankruptcy where there were no monies in the bankruptcy estate but investigations revealed a 'six figure' claim against two family members. We and counsel acted on a no-win no-fee CFA. ATE adverse costs insurance was also purchased. After trial and threatened enforcement, the defendants paid the debt in full.
Professional Negligence claims – Acting under a CFA for a group of individuals in a claim against a London firm of solicitors for negligent advice regarding stamp duty liability. We obtained a positive "Early Neutral Evaluation" which we are enforcing against the defendants.
Litigation Funding GuideDownload
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