Funding options if your dispute goes to court

Taking a dispute to court comes with legal costs, but there can be a variety of different options to help with this. These could include:

  • Legal expenses insurance
  • Third-party funding for your case
  • A conditional fee approach (also known as no win, no fee)

Our expert team can provide information about each of these options and advise on which will best fit your individual circumstances.

The costs of taking a dispute to court can vary, but will increase significantly if you also have to pay the other party’s costs in addition to your own. The prospect of this could be a concern when it comes to considering litigation, but there can often be funding options available to you which could help mitigate your worries over costs.

Legal expenses insurance

Legal expenses insurance is considered a good option for many of those considering dispute litigation. There are a range of different policy types available and what each one covers can vary, so it’s important to understand what kind of cover you need to be confident about proceeding. Some policies will cover your own costs, some may cover the other party’s costs if the outcome of the dispute is in their favour and some policies will cover the legal fees for both sides.

Some people may well have an existing insurance policy, such as your home insurance, that includes legal expenses cover as part of the policy already. It’s well worth checking your insurance policies to see if you have this cover, and what level of cover it will provide.

Your insurer will need to be kept apprised of how the case is progressing and may want to have input on how the dispute is being dealt with. They may recommend that you use one of their panel solicitors, but there can be some issues with this approach. Panel solicitors are usually cost-effective, but it can sometimes be the case that their focus is on minimising costs for the insurer rather than on achieving the best possible outcome for you. You can usually request that you pick your own solicitor to assist you with your dispute, which can help ensure that a successful result for you is their primary focus.

It’s important to note that the cost of your legal expenses insurance premium cannot be recovered from the other party even if you are successful in court with your dispute.

Third-party funding

Third-party funding may be a viable choice if your dispute is of high value and you have a very good chance of being successful in court. The funder would cover all or a proportion of your legal costs for the litigation and, in return, they would expect their monies to be returned, plus a percentage share of any damages you receive, if the case is ruled in your favour.

This funding option may be worth consideration if you could not otherwise fund the litigation, or if you wish to minimise your own financial risk and would be agreeable to the terms of the third-party funder.

Sharing the financial risk with your legal advisers

A Conditional Fee Agreement (CFA) option may be available to you, depending on the circumstances involved in your case. This essentially means that there may be a reduced fee, or your solicitor could work on your case on a no win, no fee basis in return for a share of the damages if the dispute is settled in your favour.

We can discuss all of the available dispute resolution litigation funding options with you to find a solution that suits.

We have offices in London, Richmond, Southampton, Guildford, Lymington and Woking and offer specialist support and advice to clients nationwide.