THIRD PARTY FUNDING
The business of commercial funders is to provide finance to fund all or part of the costs of a claim in return for an agreed share of the damages recovered. If the case fails the funder receives nothing. It is important for a claimant to understand that, if his claim is successful, the share of any damages he pays to his third party funder cannot be claimed as costs from his opponent. Therefore his net recovery wouldn’t be as high as it would be if he used some other form of funding.
Third party funding can be used in conjunction with conditional fee agreements and after the event insurance.
Initially funders were only interested in very high value cases. While this remains common some are now prepared to consider funding claims of a more modest value.
We can advise on funding arrangements and we have access to third party funders and brokers.