Third Party Funding

Third Party Funding is similar to ATE Insurance in that a Third Party Funder will bear the legal cost risk of a client’s litigation in the event that the case is unsuccessful. However, unlike ATE insurance, the Third Party Funder also provides interim financing for the client's own legal costs in order to progress the case (ATE Insurers generally only pay costs if the case is lost). Quite often, Third Party Funding and ATE Insurance can be combined to provide the client with a complete tailored package for hedging both the actual cost risk in the event of a lost case, as well as the interim cash flow.

Cost of funding

Third Party Funding does come at a price. Unlike ATE Insurance, the cost of Third Party Funding is not a recoverable cost in England & Wales. Accordingly, it is imperative to consider multiple options where possible. Because we access both the Third Party Funding and ATE insurance markets, we are prime placed to arrange a comprehensive and cost-effective package.

In exchange for providing interim funds, a Third Party Funder will expect to receive a share of the proceeds of the litigation if the case is successful. The size of this share is normally commercially negotiated. Prices can vary tremendously and so it is crucial for clients to consider multiple options to make sure that they are getting the best deal.

The team at TheJudge will always present a case to more than one funder (where possible) to ensure a price comparison can be made. Furthermore, because we are aware of what has been achieved previously, we are in an excellent position to assist with negotiations on behalf of the client. We have unquestionably saved our clients millions over the years by taking an open market approach.

We save both the lawyer's time and the client's money:

Negotiating Third Party Funding and ATE Insurance for heavyweight litigation can be an intensive and time-consuming process. There is a huge risk of placing all your eggs in one basket, because if the deal falls through, the client will face unnecessary legal bills, in addition to wasted time. At TheJudge, we always seek to ensure the client has multiple options.

If you have a case in need of Third Party Funding then speak to one of our specialist team on 01903 23 22 55.

Alternatively, if you’re ready to make an application please download a proposal form. Click here to download.