What problems does litigation cause for individuals with a dispute?
For businesses with a dispute – even larger ones – pursuing legal action can be daunting, but this ‘fear factor’ is multiplied for individuals exploring the possibility of litigation. Where a small business might need some help with legal fees, an individual will invariably struggle even more; where a startup or SME might be intimidated into dropping a case by a larger organisation, an individual will frequently be cowed with even greater ease. This is magnified in financial misselling situations such as interest rate hedging products (IRHP) where an individual litigant is often faced with the prospect of taking on a major bank.
For those not used to pursuing a commercial dispute, even knowing which solicitor to speak to for advice on your options can be a major hurdle to progress: not all solicitors are the same as they have different specialisms, experience, attitude to funding and ability to effectively strategize as well as just know the law. And the perceived costs of instructing a lawyer prevent many from taking a claim forward anyway.
An inherent belief that you have a good case, determination, pursuit of justice; these things matter but when every hour paid to a lawyer diminishes your final award, and every day spent fighting your corner is a day that could have been spent concentrating on your business and making money, there are other considerations too. A ruined business is one thing – for a solitary individual bringing a case to court, litigation can potentially ruin their lives.
What help with legal fees is available for individuals with a dispute?
It’s undeniable that individuals pursuing litigation are poorly served by typical traditional charging models. The hourly rate structure favoured by most lawyers is prohibitively expensive, to the point that failing to win your case could destroy your personal finances – if your case even gets to that stage in the first place. Equally, the so-called ‘no win, no fee’ model fails to account for all the costs of litigation; whilst they defer your solicitor’s costs to a successful conclusion, disbursements such as expert and court fees aren’t cheap and need to be paid for as your case progresses – win or lose.
Often the best way for individuals with a dispute to pursue their claim – and ensure they maximise their potential award – is to transfer the risk and cash-flow implications to professional litigation funders and insurers. In return for an agreed share of the final damages (which can be a little as 5%, depending on when the case settled, or up to 35% if it goes all the way to trial), all monetary risk is effectively nullified: the funding will handle all cost associated with the litigation – legal bills and disbursements.
Why Annecto Legal?
Annecto Legal is better placed than any other funder to offer help with legal fees. It can offer access to in-house expertise and a network of solicitors alongside funding and insurance. Annecto has every interest in making sure your case succeeds, so will find the best solution for you to ensure it does.
Furthermore, our funding arrangements allow you to decide for yourself the level of risk you are willing to take – and the amount of your damages award you are willing give up for risk certainty.
Third-party litigation funding offers a flexible way for individual litigants to manage their costs – and the backing necessary to get the result a solid case deserves.
Individuals seeking help with legal fees are encouraged to talk to Annecto Legal’s alternative funding experts today.