STAND NUMBER: 510
Ferguson Litigation Funding Limited
Ferguson Litigation Funding (FLF) is a company bringing together experts from the legal and finance sectors to provide third party funding to liquidators, individuals and corporates who are unable to pursue a claim due to the prohibitive cost of litigation.
Although the claim may be valid, uncertainty over the total costs and the potential risk of being ordered to pay the defendant`s cost, should they lose the claim, prohibits access to justice for many claimants.
As a litigation funder, FLF will make available funds to pay legal and other costs associated with a claim in return for an agreed share of any successful return. If there is no recovery, or if the claim is lost, there is no debt to repay as FLF provides protection for the claimant by assuming the risk.
What is litigation funding?
Litigation funding is where a third party provides the financial resources to enable costly litigation cases to proceed. The claimant obtains all or part of the financing to cover its legal costs from a private commercial litigation funder, who has no direct interest in the proceedings. In return, if the case is won, the funder receives an agreed share of the proceeds of the claim. If the case is unsuccessful, the funder loses its money and nothing is owed by the litigant.
Because the litigation funder`s return is tied to the success of the case, funders will risk assess all cases and will only look to fund cases with good prospects of success.
The funder`s share of the proceeds of a successful case is negotiated with the claimant at the outset. This financial reward typically consists of either a percentage of the damages recovered, or a multiple of the amount advanced by the funder, or a combination of the two.
This financing option provides a valuable means of access to justice for claimants who may not have funds available for potentially costly, yet valid, claims.
Litigation funding provides a cost-effective financing tool for claimants, and solicitors in England & Wales are now obliged to explain its existence and function to their clients so that they can take it into consideration when planning the funding of a case.
0845 838 1360