Own Sides Costs
Own Sides Costs
Litigation funding, in all its guises, is a constantly evolving sector with new products entering the market on a regular basis – some from well-established funders and insurers and others from new entrants seeking to bring innovation in order to carve a niche for themselves.
Most clients are heavily reliant upon their solicitors to advise them on funding packages and insurance for commercial disputes, however not all solicitors are well-placed to provide the kind of up-to-date and comprehensive advice that ensures clients can make a fully informed decision.
Annecto Legal prides itself on offering a professional service to solicitors that are seeking to navigate this complex marketplace on behalf of their clients.
Litigation is of course risky (even in the most ‘certain’ of cases) and the risk of excessive legal costs is often what prevents clients from pursuing commercial litigation. By helping clients to mitigate financial and adverse costs risks, solicitors can, at the same time, make it more likely for clients to use their services.
Is it possible to reduce risks for clients without hugely increasing risks for your legal practice?
- meet their professional obligations to clients;
- use the best available funding option for any case;
- ensure that cash flow is maintained, rather than just growing WIP;
- generate new business by actively promoting risk management tools to clients.
As well as one-to-one assistance, Annecto Legal can also give access to the most appropriate funding and insurance products for commercial disputes.
It may surprise many solicitors that not all funding and insurance products are the same
Annecto Legal works with the leading insurers and third party funders, as well as those innovative new entrants, to understand, develop and promote a full range of options for commercial disputes.
As a consequence of this work, solicitors can save time (and money) using this professional service to:
- quickly identify the right products for a case;
- assist with applications (the Annecto Legal application process is designed to be straightforward and time saving);
- follow-up with insurers and funders;
- get all applications over the finishing line as quickly and efficiently as possible.
Any solicitors that have attempted to secure funding directly will immediately recognise the benefits of this kind of support and will be able to see the time and money that it saves fee earners.
In addition to assisting with the process of funding, Annecto Legal’s market access also provides solicitors and their clients with market-leading products offering a range of benefits:
- sliding scale returns for funders (so clients may only give away 5% of damages in a quick settlement, but up to 30% of damages if the case runs to trial, with multiple stages in between);
- provides solicitors the option to share in the funder’s returns, giving lawyers access to types of hybrid damages based agreement (DBA) type returns, without full DBA risk;
- flexibility to fund cases that don’t offer a simple cash return on successful conclusion (patent cases, for example);
- funding and insurance for cases of £100,000 upwards, not just large damages claims;
- portfolio funding for multiple (unrelated) cases as well as one-off cases. WIP cover insures a law firm for the non-recovery of its fees following an unsuccessful outcome in litigation where the firm was acting on a CFA, DBA or contingency fee.
- a speedy decision-making process with simple application procedures;
- light touch oversight in funded cases, rather than onerous reporting requirements.
Funding is obviously not the appropriate course in every case, but we know that many clients benefit from transferring risk and costs from their balance sheet, and in some cases the presence of financial backing can encourage settlement (especially when that backing is at a sensible cost to the client).
This article originally appeared on Bristol Law Society website in February 2023
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* Annecto Legal can only assist on case where the loss is in excess of £100,000, with the exception of data breach claims. If you need assistance on a claim worth over £100,000, please get in touch using our form or the details below:
Annecto Legal Ltd, 106 Kennedy Building, Murray Street, Manchester , M4 6HS
0800 612 6587