Legal Funding
Understanding Legal Fees and Litigation Funding Options
Navigating the legal landscape can often feel overwhelming, particularly when grappling with the complexities of legal fees and litigation funding. Not only do we recognise the concerns and anxieties surrounding the costs associated with legal proceedings, but we also work hard to provide you with clear, straightforward information about the various options available, ensuring you feel supported and empowered to make informed decisions about your case.
Legal Fees and Litigation Funding
Embarking on legal action, whether pursuing a claim or defending one, brings financial considerations to the forefront. Understanding how legal fees work and what funding options are available is crucial for managing your resources effectively and alleviating stress throughout the process. We are committed to offering transparent guidance and support to help you navigate these complexities.
Engaging in litigation can present a costly process, including lawyers’ legal fees, disbursements covering barrister and court fees, and potential expert or mediator fees. The costs of litigation may include a significant proportion of your opponent’s legal costs if you are unsuccessful, increasing your financial risk. Understanding all associated costs is crucial for all parties involved in a dispute.
Emotional Aspects of Legal Fees
The anxiety associated with potential legal fees and the costs of opposing counsel when initiating legal proceedings can be overwhelming. The worry of incurring significant costs can deter individuals from seeking justice or defending their rights.
To help meet the costs of the litigation, a variety of funding options are available. These options can include third-party funding, conditional fee agreements, damages-based agreements, fixed legal fees and legal expenses insurance. Each type of funding has its own advantages and disadvantages, and the best option for you will depend on the specific circumstances of your case.
Types of Legal Fees
Understanding the different types of legal fees is essential for budgeting and financial planning. Legal fees can vary significantly depending on the nature of the case, the complexity involved, and the lawyer's experience. We will explain the most common types of legal fees and how they apply to your specific situation.
Types of Legal Fees
Understanding the different types of legal fees is essential for budgeting and financial planning. Legal fees can vary significantly depending on the nature of the case, the complexity involved, and the lawyer’s experience. We will explain the most common types of legal fees and how they apply to your specific situation.
Fixed Fees for Legal Services
Fixed legal fees offer cost certainty for specific legal services, providing peace of mind and budgetary control. We can offer various options, such as fixed legal fees for some work. We can also offer either a fixed legal fee for a specific piece of work, or you can set the cost of litigation limit, and we shall do as much as we can up to that amount.
Hourly Rates and Retainers
Lawyers traditionally charge for their dispute resolution services on an hourly rate basis, with the client paying for the legal fees and disbursements for the work undertaken. Our fees are billed at standard hourly rates on a time spent basis, plus disbursements and VAT. We enter into a standard retainer with you, which is an agreement that sets out which lawyer will be responsible for the matter and the anticipated costs that will be incurred.
Additional Costs
Beyond lawyers’ legal fees, there are additional costs, known as disbursements. These can include court fees, barrister fees, expert witness fees, and other expenses incurred during the legal process. These potential funding options may provide cover.
How Does Funding Help?
Exploring litigation funding options can open doors to justice for those who might otherwise be unable to afford legal representation. These options shift the financial risk and allow you to pursue your claim with confidence.
Conditional Fee Agreements (CFA)
A conditional fee agreement (CFA) between you and your lawyer usually means that you will not pay for your legal fees if you lose your case. If you win your case, you will pay for your legal costs in full, plus an additional amount which is known as a success fee. A conditional fee agreement is not available for private family work involving divorce.
Damages-Based Agreements (DBA)
If you are successful in your claim, you will be awarded “damages”. This is payment of your losses. A damages-based agreement (DBA) between you and your lawyer means that if you are successful, your lawyer will take an agreed percentage of the damages as payment of costs. In commercial cases, this is capped at 50% of the damages.
Third-Party Funding
Third-party funding is where you receive the funds to pay for the costs of the litigation from a third party who has no connection with the costs of the litigation. As with the conditional fee agreement, the funder will not receive their legal fee if your case is not successful. The disadvantage with a third-party funder is that their legal fee is not recoverable from your opponent and therefore will be deducted from any sum awarded by the court.
Funding for Specific Legal Cases
Family Law Cases
Legal expenses insurance and conditional fee agreements are unavailable for private family work involving divorce, financial settlements and Children Act cases. Usually, these sorts of cases must be funded by private payment. We understand that managing legal costs can be a concern, and we provide various options, such as fixed legal fees, staged payments, credit card payments, deferred payment with interest, and legal fee loans.
Commercial Litigation Funding
We provide funding for claimants involved in disputes of all sizes, from small claims to high-value commercial litigation. Understanding potential funding options is crucial, especially in commercial litigation, where legal costs can escalate. Third-party funding can be a viable solution, providing the necessary financial support to pursue or defend a claim effectively, thereby reducing the financial risk.
Child Protection Legal Aid
Our Family Legal Aid Franchise and Legal Aid remain an option available for advice and representation in certain types of cases involving child protection issues. Client eligibility for Legal Aid will be assessed by our Child Protection & Adoption Department during the initial contact with you. Legal Aid is only available to clients regarding child protection and adoption matters.
How We Can Help You
Personalised Legal Advice
Our experienced team will work closely with you to understand your unique circumstances and provide legal advice. We offer clear explanations of potential funding options, including conditional fee agreements and damages-based agreements. The goal is to ensure you are equipped to make informed decisions about managing legal fees. We believe in transparency and will provide a precise estimate of the legal costs for your case. Our team ensures you are fully aware of the financial implications from the outset. You will also be given an estimate of the likely overall fees, updated whenever necessary. This approach allows you to plan your finances effectively, minimising financial surprises during litigation.
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