When the time comes to show some muscle, we'll be standing right behind you.
Inevitably there comes a time in all litigation when it's important to show strength and resolve. Our job is to make sure you won't have to bluff when that moment comes.
For too long defendants with deep pockets could outspend their opponents and avoid justice. Thanks to litigation funding, those days are gone.
What is litigation funding?
Litigation can be a daunting prospect. It’s expensive, can take years and it’s risky – if you lose you pay the winner’s costs on top of your own. This combination can be off-putting, even for a business with an excellent claim. Third-party litigation funding can, however, shoulder much of the cost and risk involved and enable sound actions to go ahead when they might otherwise stall.
What's in it for the funder?
In return for shouldering all the financial risk, funders receive a percentage of the damages recovered or a multiple of the costs funded – assuming the case is won. If the proceedings fail, the funder gets nothing and may face liability for the other side’s costs.
Not surprisingly, businesses with good claims but without the financial muscle to pursue them are increasingly turning to third party litigation funding. They take the view that it’s better to share the proceeds of a successful case than keep 100% of an action they can’t get over the finish line on their own. Equally, businesses with the means to pursue litigation are turning to third-party litigation funding to mitigate the detrimental effect of a lengthy claim on cash flow.
What do we look for in a case?
- First, we look for a good case. Woodsford’s preference is for short duration, commercial, UK/international litigation. The dispute should preferably be governed by English law or that of an English law-related jurisdiction. We will fund a wide range of cases including, but not limited to, the following categories: corporate and company matters; professional negligence; tax/VAT; anti-trust; financial services and banking; insolvency; intellectual property; high-value divorce. Woodsford won’t fund personal injury, privacy or defamation cases.
- Second, it’s vital that the defendant has the financial strength to meet the claim.
- Third, the claimant must also have a credible strategy as to where and how a judgement against the defendant will be enforced.
Minimum claim size
With regard to claim size, the claimant must have suffered provable damages of at least £3m. Ideally, an expert and independent third party - for example, forensic accountants - will have already advised on quantum. However, this can be commissioned after the funding agreement has been signed.
Naturally Woodsford will want to ensure that the funding cost is proportionate to the claim value. Clearly, small claims with large costs don’t work economically.
You run your case
Third-party litigation funders are prohibited from ‘controlling’ claims and must leave day-to-day conduct of the case with claimants and their legal teams. So, whilst the Woodsford team is always happy to put its litigation experience and contacts at your disposal, we recognise that the claimant and their legal team are in charge of running the case.
Code of Conduct
Woodsford Litigation Funding is proud to be a founder member of the Association of Litigation Funders of England and Wales, the body dedicated to promoting best practice in the litigation funding industry and campaigning to improve the uses and applications of litigation funding. We were instrumental in the drafting the Code of Conduct, published by the Civil Justice Council in 2011.