Are you involved in a civil dispute that looks like going to Court but you cannot afford legal representation, or do not want to pay the substantial costs involved? What happens if you don’t qualify for legal aid?
There are certain “litigation funding” companies that can assist if your case qualifies. To qualify usually means that your case is worth a large amount of money and you have a good legal case to recover this money.
Litigation funding involves a third party agreeing to meet all the financial costs and risks of litigation by:
- Paying all your legal fees and disbursements;
- Indemnifying you against any adverse cost order should you be unsuccessful with your claim; and
- Providing any necessary security for costs.
The cost of going to Court can be substantial. If you are approved litigation funding, you will have peace of mind that your costs will be met by the litigation funder. The funder only gets paid if you recover money, in which case it will take its share. If you do not recover funds, they get nothing.
This removes much of the financial risk in going to Court, and can be the difference between deserving claims being run or abandoned.
Litigation funding is even available if you have the capacity to fund your own claim. This can provide an effective method of freeing up assets and cash flow to grow your business rather than tying up funds in long and risky litigation.
Note that litigation funding is not available for criminal matters.