Jurisdiction(s):
United Kingdom

Practice Notes on Litigation Funding Agreements: Pricing, Adverse Costs and Security, Drawdowns, Representations and Warranties, Control, Termination, Legal Team Changes, Dispute Resolution, Priorities, Investment Top-ups and Co-funding

Published on: 15 August 2024

Published by a LexisNexis Restructuring & Insolvency expert

Legal News

Article summary

Litigation funding agreements—pricing: assesses fee models, pricing levels, scenarios, and multiples on deployed versus committed capital
Litigation funding agreements—adverse costs and security for costs: reviews funders’ adverse costs exposure and security for costs
Litigation funding agreements—drawdown processes: sets objectives, submission timing/checks, large or invoice-backed advances, finance team practices
Litigation funding agreements—representations and warranties: frames the R&W framework for the solicitor, the case, information sharing, and the LFA
Litigation funding agreements—control: covers funder involvement models, solicitor/counsel input, and key decisions
Litigation funding agreements—termination clauses: outlines termination triggers and consequences of ending funding
Litigation funding agreements—change of legal teams: identifies triggers and practical steps when replacing advisers
Litigation funding agreements—dispute resolution: encourages good faith, expert or mediator appointment, arbitration fallback
Litigation funding agreements—priorities agreements: sets proceeds waterfalls and whether in LFA or deed
Litigation funding agreements—investment top-ups: explains term changes, effecting them, ATE updates, co-funders, timing
Litigation funding agreements—co-funding: aligns returns, documentation, communications, and co-funders’ working relationship

For overviews of funding for insolvency litigation and investigations, and of funding arrangements, see: Funding of insolvency litigation and investigations—overview and Funding arrangements—overview...

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