Funding options for your dispute
Cost and budget management are crucial whether you are a large organisation, an SME, a small business, or an individual. Litigation can be an expensive process and we will work with you to explore the best funding and cost-control options for you.
In particular, if a dispute is likely to be or becomes complicated or where large sums are involved it is important to ensure that you are using the right funding arrangements to limit the risk to you or your business. This includes assessing the potential cost of the dispute and – if appropriate – putting in place arrangements to meet those costs and to minimise the risk of you having to bear these costs.
There are a number of options available to fund a dispute. These include:
This is the normal basis upon which solicitors are instructed. The fees are charged based upon the time spent on the matter. Invoices are raised on a regular basis and paid throughout the matter. Click on the above title for more information.
A CFA is an agreement between you and us under which you agree to pay our fees at less than our usual rates, or not at all, if your case is not successful, and at standard rates plus a "success fee" if you are successful. Click on the above title for more information.
A DBA is an agreement under which you agree to pay us a percentage (no more than 50%) of the money you recover in your claim as payment of our fees. Click on the above title for more information.
Other contingent funding arrangements
Contingent funding arrangements, other than conditional fee agreements and damages based agreements, that comply with the statutory requirements, continue to be unlawful in contentious matters and may only be used in certain types of non-contentious work, including work which takes place before proceedings are commenced.
Contingent funding arrangements other than conditional fee agreements and damages based agreements that comply with the statutory requirements continue to be unlawful in contentious matters and may only be used in certain types of non-contentious work, including work which takes place before proceedings are commenced.
ATE insurance is an insurance policy that you can take out after your dispute has arisen and which protects you against the risk of having to pay the other side’s legal costs if you lose. The policy can often be extended to cover some or all of your disbursements, such as barrister’s and expert's fees.
Policies vary but usually the premium is only payable if you are successful in your claim (and only becomes payable at the end of your case). Click on the above title for more information.
TPF is the provision of funds by an outside funder (who has set up a specialist business for the purpose of funding litigation) in return for a share of the proceeds. It is available for litigation, arbitration and other forms of dispute resolution. Click on the above title for more information.
BTE legal expenses insurance is a ‘before the event’ insurance policy that may be added on to another insurance policy that you hold, such as motor or household insurance or be part of a business’s suite of insurances. Depending on the terms of cover the BTE provider would pay for yours and the other side’s costs even if your claim was unsuccessful. Click on the above title for more information.
Depending on the nature of the dispute, if you are a member of a Trade Union, you may be eligible to receive legal advice and support. In certain circumstances there could be no charge. However, Trade Union funding may be restricted to certain types of dispute and there may be costs attached.
If you are a member of a Trade Union, always check with your union whether they can offer assistance or, potentially, financially support the litigation in contemplation.
Shulmans is not currently affiliated with any Trade Unions so we would not be able to assist on this basis.
Publicly funded work
Publicly funded work is more commonly known as Legal Aid.
Legal Aid can assist with the some or possibly all of the costs of legal advice and representation in a court or tribunal in certain circumstances.
If you wish to explore whether or not you are eligible for Legal Aid, you should contact the Legal Aid Agency. The Legal Aid Agency have certain eligibility criteria which must be met, this includes testing your means.
Unfortunately Shulmans is unable to undertake work on a publicly funded basis.
Our approach is simple. We will work with you to establish the right strategy for you and this includes assessing the cost implications and how these can be met. It may not always be appropriate or possible to apply a funding option to your case or your type of case – our team will advise you.
Crucially you will be aware of the options and possible cost implications to ensure that the most appropriate funding arrangement is in place for you.
If you require a considered evaluation of how the various funding options work we can direct you to a third party which, for a fixed fee, will assess your claim and provide you with a consultancy service that will enable you to quickly and efficiently determine the suitability of the various funding options. This is an economical way to ensure that you are running your case using the most appropriate funding option for you.
The above information is available to download as a PDF.