Litigation funding is a fast-growing sector, with investors placing more funds into the market, new providers emerging and the courts acknowledging the value provided by the funders. However, there are many misconceptions and misunderstandings about what litigation funders do, who they can assist and how much they expect to get paid for their services. It is important that these myths be exposed and the most common concerns about litigation funding addressed.

“Litigation funders are only interested in multi-million pound claims.” For several litigation funding organisations, this is true. They will have a minimum claim value that needs to be exceeded before they would consider offering assistance.

However, for the majority of funders, this is not the case. Providing that the litigation is meritorious, passes the funder’s risk assessment and, upon success, will generate enough to satisfy the costs of the action (both in terms of legal and funders fees), while leaving the claimant with sufficient return for taking the action, then there are many funders which will look at claims of all sizes.

Where the claim is too small to satisfy these criteria, there are funders that will be open to taking an assignment of the claim, to pursue themselves.

Jul-Sep 2017 issue

Ferguson Litigation Funding