How, if at all, has the downturn in the economy affected litigation funding? Steven Friel & Michael Williams discuss the evidence
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There has been a great deal of hyperbole written about litigation funding in the last year. An expected increase in litigation caused by the financial crisis combined with the increasingly accepting political and judicial approach to litigation funding has led many to predict a rapid rise in third party funding agreements, including agreements whereby professionals funders such as banks and hedge funds agree to take on a part of the litigation risk from a claimant in return for a slice of the damages award if the case is successful. However, for all the hype, a relatively small number of cases have actually been funded, suggesting that demand in the current economic climate may be not be as ripe for litigation funding as many expected.
Conditional fee agreements
The usual type of conditional fee agreement (CFA) between a client and his solicitor provides that if the
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