Clear & Transparent Costs Information
Failure to properly advise clients about litigation funding is a breach of the SRA Code of Professional Conduct and potential ground for a claim for professional negligence. Clients must be provided with sufficient information by their legal representatives on how they might be able to fund their case and an estimate of the costs. The implications of funding options must be explained to the client including advice as to the risks of paying their opponent’s legal costs. If your solicitor fails to give you adequate advice on litigation funding this could cause financial loss.
If you think you have suffered a loss as a result of an error, mistake or bad service by a professional, it is important to act quickly and seek independent legal advice on the merits of your potential claim. Please call us on 0207 459 4037 for a Free Consultation to discuss your professional negligence claim.
What is Litigation Funding?
Litigation funding is where a third party, who has no prior connection to your litigation, agrees to fund all or part of your legal costs in return for a fee or premium which you pay from the proceeds you recover.
You may wish to consider third party litigation funding if, without it, you would not be able to afford to pursue a legal action to assert your rights. Third party funding will enable you to share the risk of pursuing a claim.
What costs information am I entitled to from my solicitor?
Your solicitor or legal advisor has a duty to give you the best possible information at the outset about the different ways of funding and paying your legal costs and an estimate of the overall costs of your case.
The cost estimate will usually require updating throughout as your case progresses, as it may not always possible to provide an accurate estimate at the start of a case.
You should also be informed of your right to challenge or complain about your bills, and should be given information about any other payments you may be responsible for including court fees and expert or Counsel’s fees.
As a firm, we always give our clients all the options in which they might be able to fund their case and we discuss the advantages and disadvantages of each option for the client’s circumstances. If you have a professional negligence claim and would like to discuss funding options, please do not hesitate to get in touch with us for a free no-obligation consultation. Depending on the circumstances, we may be able to offer you a no win no fee agreement which means that you won’t have to pay for our legal fees upfront.
Solicitors’ failure to properly advise on funding options for clients?
If your solicitor or legal advisor failed to give you advice on how you might be able to fund your case, they may be negligent. For example, your lawyer should advise you on the best way of funding your claim, and protect you against any adverse costs.
If you have lost a case or received an adverse cost order against you, you may be able to recover these financial losses from your legal representative. You will need to be able to show that no efforts had been made to protect your costs position by providing you with sufficient and informed advice on litigation funding and cost protection.
If you think you have suffered a loss as a result of an error, mistake or bad service by a professional, it is important to act quickly and seek independent legal advice on the strength and weaknesses of your potential claim. Please contact us for a Free Consultation to discuss the merits of your professional negligence claim.
What do I need to show to evidence that my solicitor has been negligent for failing to advise on funding options?
Your solicitor is likely to be negligent, if you can show the following:
- That you had a reasonable prospect of succeeding on the initial action (most cases involving litigation should have a 51% or more chance of success)
- That you can evidence that your legal advisor did not discuss litigation funding or refer them to another firm which might have discussed such products
- That you have a costs order against you by your opponent
- If you lost the chance of pursuing the claim due to the failure of the legal advisor to advise about the different funding options you may have a claim against your legal advisor.
What are the options to fund my legal claim?
We understand that funding your claim may be difficult particularly where you have suffered significant financial loss as a consequence of a professional’s negligence.
We often get asked whether we are able to accept instructions on a “no win no fee” basis such as a Conditional Fee Agreement (“CFA”) or a Damages Based Agreement (“DBA”).
We will consider each claim on a case-by-case basis and we will discuss the different funding options with you to assess what type of funding arrangement would be in your best interest including whether you have an existing insurance policy in place which may provide a contribution towards your legal costs, this may be:
- Fixed fees – where we agree a fixed fee with you for certain work
- Hourly rates – where we charge for our work on an hourly rate basis
- No win no fee – where we do not charge you anything unless you recover some compensation from the negligent professional
- A combination of the above.
We also have relationships with litigation funds and after-the-event insurers that may be able to provide funding at discounted rates for your claim based on our opinion of your claim.
It is important that litigation funding is discussed at the outset of any matter. If litigation funding especially ATE insurance is not discussed with clients, it could potentially mean that if a claimant loses a case and is left with a large legal bill to pay personally, they may have a claim against their legal advisor for professional negligence. A claim may therefore arise if it can be shown that their former lawyer failed to advise that potentially the litigation cost risk could have been avoided by the purchase of an ATE insurance policy or similar arrangement.
In the event that your professional negligence claim is successful, we have an excellent track record of being able to recover the majority of your legal costs from the professional (and their insurer).
Free Consultation with Expert Professional Negligence Lawyers with 98% Success Rate
We will offer you a bespoke litigation funding package that meets your own circumstances and needs. We will work with you to find the best funding solution for your claim. You can find some further information about our funding options here.
If you have a professional negligence claim or are concerned about the handling of your legal case, please contact us for a Free Consultation on 0207 459 4037 to discuss the merits of your professional negligence claim and the litigation funding options for you. You can also schedule a Free Consultation with our lawyers using the booking form below.
