Creative solutions for financing competition litigation
Deciding whether to pursue a competition claim following loss as a result of anti-competitive behaviour is not an easy decision to make. Potential claimants can find themselves in the frustrating situation of needing cash flow assistance to pay for the initial investigation into the claim but unable to find a funder willing to put up some cash prior to this work being undertaken.
Click here to read Robert Warner’s brief guide to the key financial products which may help law firms and their clients to overcome this chicken and egg scenario when bringing a competition claim.
5 key considerations when obtaining adverse costs insurance for competition class actions
The use of litigation funding and ATE insurance has become more commonplace for multi-claimant actions. For some, it is the only way they bring their claim. For others, it’s a commercial solution that can take what is likely to be a costly legal spend “off balance sheet”. Whilst litigation funding steals the limelight, more often than not, it is the less glamorous ATE insurance that facilitates the funder’s ability to offer funding terms and, ultimately, seals the deal.
Click here to read Verity Jackson-Grant’s 5 considerations to bear in mind when obtaining adverse costs insurance for competition class actions.
We believe we’ve found a solution to the law firm portfolio financing dilemma
We know that litigation and arbitration teams are under increasing pressure to offer innovative fee arrangements and increase profitability, but that doing so is not always straightforward. The buzz phrase most often mentioned in collaboration with words like “innovative fees” and “profitability” is “portfolio funding” but, for the most part, previous models have been rather one sided in favour of the funder – not offering much by way of benefits to the law firm or the client.
Click here to read more about the work we have been doing with major law firms and market leading litigation funders and ATE insurers to devise a choice of template portfolio arrangements that have the flexibility to sit behind CFAs, DBAs and non-UK contingency fee arrangements for a broad spectrum of case types and sizes.
Other interesting articles
- Davey v Money & Ors: Beware of leaving the litigation funder to arrange the client’s ATE insurance
- Don’t fall foul of the updated SRA obligations
- Insurance is an essential ingredient as the global expansion of litigation funding continues
- Adverse costs insurance: Differing perspectives