The Funding Process
Every funding package provided by Litigation Lending Services is individually tailored to the requirements of the client. The features, limits, conditions and terms vary though the majority include the following:
Cover for Legal Fees
Litigation Lending Services will pay for up to 100% (including any GST) of the time costs and disbursements of both the legal team and the supporting experts.
In modern corporate litigation the solicitor represents only one role of many required in a successful action. It is usually necessary for one or more expert witnesses to give evidence on technical issues and at least one (sometimes two) barristers to present the case to the Court and give advice on specialist points of law.
These professionals will usually bill on a time/cost basis and any expenses will be in addition to this.
Finally there is the issue of administrative costs, court costs, filing fees and transcript charges which, over the length of the proceedings, can all significantly add to the cost of the process.
Cover for Insolvency Practitioner's own fees
In instances where the plaintiff is an Insolvency Practitioner, Litigation Lending Services will pay for up to 100% (including any GST) of the Insolvency Practitioner's costs in assisting in the litigation.
Even if there is no requirement for a Solvency Report or affidavit evidence there will be general administrative time used in providing instructions, receiving updates and monitoring the progress of the proceedings.
Indemnity against adverse cost orders
Plaintiffs face the risk of having orders for adverse costs made against them either during, or at the conclusion, of any litigation. Litigation Lending Services can provide the plaintiff with an indemnity against such orders allowing the plaintiff to progress the litigation without the shadow of personal liability.
Bank Guarantees to support security for costs orders
Most defendants will require some form of security to confirm that any order for costs can be met by the plaintiff. Litigation Lending Services will provide a bank guarantee to support the indemnity provided in the event that the defendant makes a security for costs application.
Assistance in Management and evaluation of a case
Litigation Lending Services has a depth of experience in numerous areas of commercial litigation. Litigation Lending Services will assist in the management and direction of any proceedings in which funding is provided.
All attempts will be made to reach a quick and effective resolution to the case that provides the plaintiff with the maximum achievable return.
The Cost
All Litigation Lending Services' costs and fees are payable from the moneys recovered from the litigation. In return for the provision of funding, when the matter is successfully resolved, Litigation Lending Services receives repayment of its funding together with an additional sum calculated usually between 20-35% of the judgment or settlement sum received by the plaintiff.
Litigation Lending Services will discount the cost if an early settlement is achieved. If a quick and inexpensive settlement is reached, the cost can be reduced by up to 50% of the standard rate.
If limited funding is required (for instance an indemnity only) then the cost will be reduced accordingly.
If the litigation is unsuccessful then there is nothing to pay. Litigation Lending Services will not ask for the repayment of any funding provided, will not charge an additional sum and will cover the costs of any adverse cost order made against the plaintiff. The litigation is effectively run on a no-win: no-fee basis and Litigation Lending Services bears the risk.
Click here to download a standard copy of our funding agreement. The terms of our standard funding agreement can be tailored to suit your specific requirements.