Can litigation funding negate a security for costs application, asks Georgina Squire
- Litigation funding is on the rise and greater scrutiny from the courts has followed.
- Funders have looked to the support of after the event insurance policies, but these have also been put under the microscope.
- The ‘Arkin Cap’ is now a significant consideration for third party funders when assessing whether and at what level to provide funding for litigation.
We are all seeing a rise in litigation funding, evidenced recently by the explosion in profits of one significant AIM listed funder, Burford Capital LLC. Burford’s 2017 Annual Report shows income up by 109% to £341m and profit after tax up by 130% to £265m.
However, with this rise in funding, comes greater scrutiny by the courts of the role of funders in litigation and their potential liability to other parties. Recent case law has increased that potential liability. Funders often look to the support of an after the event
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