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Damages based agreements - litigation funding

In appropriate cases our commercial litigation solicitors may be able to offer you a damages based agreement as a funding option. This funding option has only been available in commercial cases since April 2013. A damages based agreement is an agreement between Stephensons and you, whereby you agree to pay a percentage share of the damages if the case is won against the opponent. Under this agreement we would normally require payment either if sums are recovered through settlement or after the case has gone to court.

A damages based agreement is a suitable option because they have the advantage of limiting the impact on cash flow. This is because you only pay expenses such as barristers fees until sums are recovered; at this point you then pay our fees.

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How does charging work?

With a damages based agreement, we will take a percentage of damages recovered if we win. We would pay expenses such as barristers costs out of that percentage. We would receive no fee during the case. If you lose we would not receive any fees. If you are successful, and the other side has gone into administration or has no assets, again we would not be paid.

How does the success fee work?

The success fee is the percentage of damages we will charge in the event that you are successful in your claim and recover damages from your opponent, either as a result of a trial or by settlement. We will agree with you what is considered success and consequently when we will then be paid. We will also agree the percentage of damages we can receive. There is also legislation that outlines the maximum percentages that can be charged for certain cases.

What happens if I lose?

If you lose, you do not pay our fees. In the rare instance when a case is lost at trial, we can provide clients with insurance protection from having to pay legal costs to opponents.

Damages based agreements are a particularly suitable option where the case has a high monetary value and there are good prospects of recovery. Call us today on 01616 966 229 to see if this option could assist you with financing your litigation claim, alternatively please complete our online enquiry form and a member of the team will contact you directly.

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