In the current climate, many businesses are increasingly looking for creative ways to fund litigation, particularly in relation to the funding of disbursements or expenses. Disbursement funding can be obtained to assist with the costs of items such as counsel’s fees, court fees and experts’ fees, in return for a share of the claim proceeds. The benefit of taking out disbursement funding is that litigants will not need to commit their own funds to bring the claim, enabling costs that would otherwise need to be spent on litigation to be applied elsewhere in the business. The inclusion of a funder’s support can also be a way of levelling the playing field in matters where the Defendant seemingly has unlimited resources. Additionally, funding, in conjunction with ATE insurance, can work for companies that don’t want the cost of litigation to affect their balance sheet, particularly considering that litigation can take several years to come to a conclusion.
Traditionally, obtaining third-party litigation funding has been expensive and only been available for larger disputes. However, TheJudge’s affiliate company, ERSO Capital (“ERSO”), has just launched a new funding product which can assist in more modest-sized disputes. The “SME Fund” has been created to overcome all the traditional barriers of funding small to medium-sized commercial disputes by providing a fast-tracked process for obtaining litigation funding between amounts of £100,000 to £500,000. To assist with the economic challenges, funding returns are typically half the cost of traditional litigation funding. This is achieved through staged pricing based on the amount of time the funds are needed and returns based on funds deployed rather than capital committed. These are particularly relevant in smaller matters where cases often settle reasonably quickly. The large benefit of using ERSO is they require lower funding to damages ratio of 1:6 rather than the market standard of 1:10. This will help cater for a larger number of cases that are in need of funding so their claims can be pursued.
The SME Fund will operate in conjunction with an exclusive partnership with TheJudge’s SME disputes team who will complete a full market search to obtain to most competitive adverse costs insurance cover available to provide a complete funding and insurance solution.
If you would like to discuss any matter to see if it would be suitable for funding or After-The-Event insurance, please don’t hesitate to contact: