Janna Purdie reviews a novel approach to litigation funding
In Jeffrey Jones v SoS for Energy and Climate Change [2012] EWHC 2936 (QB) the High Court considered the use of credit agreements between a law firm and its clients.
The law firm was acting under a conditional fee agreement (CFA) but this did not assist the claimants in covering the on-going disbursement costs which would arise during the course of the proceedings. Entering into credit agreements with its clients, the law firm acted like a “bank” and paid the disbursements during the proceedings.
The payment, in the form of a loan, was payable at the end of the proceedings together with interest. If the claimant was successful, the costs of the disbursements would be payable by the defendant. If not, the costs would be covered by after the event (ATE) insurance the claimants had taken out. Either way the stress to the claimants of seeking to deal
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