The process of applying for litigation funding is largely administrative and decisions are generally made quickly.
Case Summary and Merits Opinion
A written case summary, setting out the facts of the case, the grounds of claim and the likely defences, together with counsel’s written opinion on the merits, is required. This should be an honest opinion on the prospects of success, rather than a ‘best case’ scenario. Ideally, this should be written by a barrister with experience of similar cases.
Evidence of Quantum
There needs to be enough information given in order for funders to understand the amount of a claim and how a schedule of loss or valuation has been worked out in order for them to assess the return on their investment and therefore whether it justifies the risk involved.
Cost and Fee Agreements
Pull together all Conditional Fee Agreements, Damages-Based Agreements and Solicitors’ Retainer terms that have been entered into. There is also useful information within the documents that detail how civil litigation costs are assessed, which will enable funders to model the total outgoings of a case against the likely recovery. If you are looking for UK Litigation Funding, see https://www.novo-modo.co.uk/litigation-funding.
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You need to supply the funder with all the Cost and Fee Agreements already in place, such as a conditional fee agreement, a damages-based agreement or the claimant’s solicitor’s retainer. A good understanding of how civil litigation costs are assessed and recovered is crucial, as the funder will model the total outgoings against the likely recovery to ensure that it is not committing to a loss-making situation.
Financial Position of the Claimant
We require copies of recent management accounts for limited company claimants and personal financial statements for individual claimants. This information is used to assess whether the claimant presents a litigation risk and whether they have sufficient funds to prosecute the claim through to trial should their circumstances change.
Existing Court Orders or Directions
If the claimant has already issued proceedings then funds can be applied for on a faster basis than when a case is at an early stage, providing all relevant Court Orders and Directions have been included. A timetable for Proceedings as well as any relevant time limitations need to be provided.