Even when you do win your case, the costs of going to court can be higher than the amount that you are awarded. By knowing in advance what costs your litigation funding will cover and what you will have to find from another source to fund your case, you can plan and budget accordingly.
Court and Tribunal Fees
Court and Tribunal Fees: Most litigation funders will cover the court claim fees. These are charged by the court and are detailed in how court claim fees are structured. They are usually scaled on the value of the claim and can be several thousand pounds before a hearing.
Expert Witness Costs
Fees of experts including medical experts, forensic accountants and other technical specialists can be very high (even in excess of £200 per hour). Generally, most funders will agree to pay the reasonable fees of experts. In some cases however, the funder’s approval will be required before an expert is engaged, particularly if their fees are expected to be very high.
Barrister and Solicitor Fees
In relation to legal costs, Litigation Funding can cover the costs of a Barrister and/or Solicitor during the funded period. These are typically the costs incurred by the Lawyer from the date that the funding agreement is signed. Costs incurred prior to signing the funding agreement are usually non-recoverable. It is therefore essential that funding is agreed as early as possible in the case.
Other Disbursements
Translation costs; Process serving; Court bundle preparation; Other costs incurred for the purpose of a case that may seem expensive but are often required. Most funders will treat these as other disbursements, to be approved by the funder and itemized where necessary. Large disbursements such as these are best agreed with the funder prior to incurring the cost.
ATE Insurance Premiums
After the Event insurance, ATE, which protects the paying party’s costs against an adverse decision in the main action. Many Litigation Funders will pay the premium for the funder as part of their funding package for the main action. If you want Litigation Funding, https://www.novo-modo.co.uk/litigation-funding is a good place to start.
What Funders Exclude
Please be clear that most costs which are not directly associated with the claim will not be covered by a funder (e.g. general business overheads) as well as costs incurred prior to agreement of funding of the case.
It is very important to agree a schedule of the costs that the funder will pay as well as those that you will pay as soon as possible in order to avoid any uncertainty as to what is included in the funder’s budget for the case and what you will have to find from other sources.
