We’ve been thinking about litigation funding – so you don’t have to

What do I need?

You will need:

• a good claim;
• with a clear monetary value; and
• good prospects for recovery from the opposing party.

What can Memery Crystal do for you?

We can offer to:

• conduct your claim;
• arrange for our legal fees to be paid (in full or in part) by a third party funder; and
• arrange insurance for you, against an adverse costs order requiring you to pay your opponent’s costs.

What does it cost?

• If you win your case, typically you will pay the funder a percentage of your damages or a multiple of the legal costs paid by the funder on your behalf plus the insurance premium for insuring against adverse costs.
• If you lose your case, you will not have to pay the funder for the legal costs they have expended on your behalf, nor your opponent’s costs, nor the insurance premium.

Typical Scenario

An oil & gas exploration company has a claim against a drilling contractor for £5 million.

A third party funder agrees to fund the company’s legal costs, in exchange for 25% of any sums recovered from the drilling contractor.

In addition, the company takes out insurance against having to pay the costs of the drilling contractor in the event that the company loses the claim.

The case goes to trial and each side spends £750,000 in legal costs (the company’s legal costs having been paid by the funder).

The company is successful and is awarded £5 million plus two-thirds of its legal costs (£500,000) = £5.5 million.