Third Party Funding

TPF works by an investor paying solicitors, barristers, experts and other costs and expenses, including, crucially, arranging insurance against having to pay the other side’s costs in the event of losing, all on a “no win, no fee” basis.  The investor’s return comes from successful cases in the form of a multiple of the sums invested or a proportion of the damages awarded.  If the claim is unsuccessful, there is simply nothing to pay.

TPF is now available to finance costs for Claimants in litigation or arbitration, whether they are insolvent, financially stressed, risk averse or simply keen to manage disputes rationally.

Calunius can arrange for TPF to cover many types of litigation risk in many different countries, particularly the common law jurisdictions in theUK, Australia, New Zealand, Canada, Cayman Islands (and similar Caribbean jurisdictions) and the USA.  Arbitration risk can be addressed in most OECD countries. 

The basic parameters of a fundable claim are that;

• The claim should have good prospects of success against a solvent defendant and

• The claim value should be for a sufficient multiple of the likely costs.  For example the claim should normally be worth at least 6 times the costs of pursuing it all the way through trial.  As a rule of thumb, claims will need to carry a quantum of at least £2mm in order to be fundable.  There are no upper limits in terms of quantum.

 There is one important advantage for Claimants who secure TPF through Calunius.  Defendants to a claim supported by TPF will know that the case against them has been professionally appraised by experts independent of the Claimant, both as to the merits and as to quantum.  Some defendants have settled immediately they became aware that the Claimant was supported by a properly structured TPF agreement.