6 example questions to test yourself
1. Know that litigation insurance – aka ATE insurance – is not solely restricted to adverse costs, and that insurers can also cover a claimant’s own legal fees (whether in conjunction or in isolation)?
2. Routinely advise your corporate claimant clients that despite their ability to pay your fees, they can insure those fees and expenses against the risk of losing the case or the award being unenforceable i.e. in the same manner as many litigation funders do?
3. Advise that it is common for most, if not all, of an insurer’s premium to be payableonly if the case succeeds; and that the cost is typically less than a quarter of that charged by funders?
4. Inform clients of the significant competition taking place in the litigation finance market – including how the funders’ varying pricing can result in substantially different financial outcomes for the client?
5. Disclose any potential interest you may have when introducing a client to a particular litigation finance company or insurer?
6. Advise clients with English Arbitration Act cases that following the landmark Essar v Norscott case, it may be possible to recover the cost of a funder’s success fee, but doing so will require evidence as to reasonableness of the cost? Incidentally, TheJudge brokered the funding to Essar, which meant we could provide the evidence of reasonableness to the arbitrator i.e. due to the market search we undertook at the time the client sought funding.
The above is just a small sample, yet many UK litigators will fail to answer affirmatively to some or each of these questions.
On invitation of The Brief, The Times legal special, TheJudge’s Director of Broking, Rob Warner, provides an overview of some of the risks lawyers could be taking. Read the full article here.
If you have a case that you feel might benefit from this offer, then please contact: