If a case is unsuccessful, the funder bears the financial loss. That is their risk and how they price their investment. The client should always retain the major part of an award and no funder should ever take a success fee that provides otherwise.
Where a client is facing a ‘David v Goliath’ battle, litigation funding can provide a level playing field whereby it limits the opponents ability to force the client into an early settlement or to run out of money, which could damage the client from being able to pursue their claim further.
For corporate businesses, litigation funding and insurance provides an off-balance sheet solution, that can relieve pressure on legal spending. Legal fees can often increase as the litigation progresses and this makes it very difficult for Financial Directors and controllers to budget accordingly.
It is important with all funders that your legal team have the relevant experience in the area of law to which your case relates. Equally it is important that where you have Counsel instructed to act that they also have the relevant experience. Funders are not looking for the cheapest representation but the right expertise. If you do not have a Solicitor at present then speak to our team who may be able to recommend some firms to you.
It is a requirement of most funders for there to be adverse costs insurance in place (ATE) in order for funding to proceed. This is because the funders do not wish to be liable for the adverse costs award should you lose your case. (Please refer to our section on ATE for more information as to this type of insurance cover). The funders will however, look to include within their overall funding commitment the cost of this insurance cover. Maxima can help you to source this cover for you, as it will be part of our overall risk assessment of your case requirements.
After the Event Insurance (ATE), also known as Legal Expenses Insurance, is where an insurance company provides an indemnity for your legal costs up to the level of cover taken out, in the event you should lose your case.
ATE insurance is usually taken out to protect the adverse costs potential exposure, however it can also include cover for own disbursements costs and sometimes a proportion of your legal costs. However, in order to get cover, your case needs to have good prospects of succeeding. Some insurers, prefer different case types over another, have different levels of cover available, different terms and conditions and various premium options. We will clearly set out the pros and cons of each which will help you to make a fully informed choice.
Confidentiality, and making sure we understand our clients’ circumstances and requirements is paramount to us, and a vital part of the service we offer at Maxima. For details on how third party funding works, please speak to Vanessa Andrews or see our
It is always best to protect yourself or your company in the first place from the inherent litigation risks of the Media & Entertainment Industry. Through Maxima we have access to specialist and comprehensive insurance products to protect you or your company in the event you need to defend a claim being brought against you. Claims could stem from a number of risks but to name a few:
As an individual, any claim that affects your reputation or privacy could have immediate and long term career implications, so having the protection of an insurance policy to pay your legal costs provides peace of mind as well as financial assistance.
As a business, as well as the exposure of reputational damage, with the expansion and increasing reliance on technology, the risk of suffering a loss related to problems with computer systems or holding sensitive customer data continues to grow. If your business retains personal information on clients or customers, including names, addresses, bank details and other sensitive data any damage or unauthorised access could lead to legal and regulatory costs as well as reputational damage. This could affect your business’ ability to defend any claims, if you do not have insurance protection in place.
Each client's circumstances are different, together with their attitude to risk. Our experienced multi-field experts will help you find or create a solution that meets your individual requirements.
Intellectual Property Insurance covers your business for the legal cost of pursuing infringement or theft of your Intellectual Property. It can also pay to defend you against allegations of infringement.
