header-logo header-logo

01 September 2023 / Oliver Way
Issue: 8038 / Categories: Features , Profession , Litigation funding , Costs
printer mail-detail

Litigation funding agreements: chasing waterfalls?

135192
What can you expect from a litigation funding agreement? Oliver Way sets out budget considerations, waterfall details & other key points you may encounter
  • A relationship between a litigation funder and a funded party is governed by a contract known as a litigation funding agreement (LFA).
  • Key elements of a LFA include a detailed budget for the case, the waterfall of payments, what happens if any dispute arises, and confirmation that the funded party remains in control of the litigation.

Once a litigation funder has agreed to finance a claim, the next step is to draft a litigation funding agreement (LFA). Knowing about the clauses which are important to a funder allows you to give early advice to your client on what to expect.

At its core, a LFA sets out basic principles: the promises a funder makes to meet all the fees and disbursements involved in bringing the claim, and providing an indemnity for any adverse costs which might arise, in exchange for the return of

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Switalskis—Sally Ann Masih, Suzy Overton & Jane Beaumont

Switalskis—Sally Ann Masih, Suzy Overton & Jane Beaumont

Trio of recruits strengthens Switalskis residential property team

Ward Hadaway—Steven Hayward

Ward Hadaway—Steven Hayward

Birmingham law firm appoints construction partner

Flint Bishop—six appointments

Flint Bishop—six appointments

Flint Bishop accelerates Northern growth through strategic senior appointments

NEWS
A High Court decision has clarified that a home may be unfit for human habitation not only where conditions endanger health or safety, but also where they seriously undermine comfort and convenience

A longer time limit for employment tribunal claims, new charity law thresholds, property tribunal recruitment and appellate guidance on small-claims costs feature in the latest Civil Way round-up

A recent High Court ruling could make issue estoppel considerably more complex in cross-border litigation, requiring parties to consider the foreign law governing the underlying claim
The Supreme Court has overturned Cheshire West’s bright-line test for deprivation of liberty, replacing it with a broader, more contextual assessment that gives greater weight to an individual’s wishes, feelings and apparent consent
Jonathan Fisher KC’s wide-ranging fraud report contains worthwhile proposals, but turning them into workable reform will require money, capacity and political will
back-to-top-scroll