What do you need to consider when applying for Third Party Litigation Funding (TPLF)
Repayment terms: The first important consideration is how and when the funding charges and/or ATE premium will be repaid and over what period. Usually if a case is unsuccessful the insured pays no charges. Fees are payable only when there’s a successful outcome.
Evidence-backed, justifiable case: There must be clear evidence of what rules, regulations or laws have been breached.
Counsel and expert opinion: You will need a respected Counsel’s opinion on defendant liability, the quantum of the claim and, if consequential losses are involved, the causes. Any jurisdictional or limitation issues should be addressed.
Full information: At least a draft Letter of Claim and, if relevant to the case, an expert report.
Clarity on how funding and ATE insurance will be used: Funding is usually requested for own disbursements and own solicitor/counsel fees (that part not covered by a CFA). We would look to fund fees not on a CFA, plus own disbursements and protect all adverse costs via ATE insurance. Some law firms may be unable or unwilling to conduct the case on a full CFA or to fund disbursements if the claimant can’t. This enables them to draw down on funding to cover own base costs.