What are some of the risks associated with litigation funding?
Risks associated with entering into a litigation funding agreement include that its terms and conditions may allow the funder to stop providing funding in certain circumstances, for example… Read More • If it later transpires that in fact the merits of the claimant’s claim are less than 51% (rather than the claim having good prospects of success). Indeed if it turns out that the claimant has failed to disclose all material information about the claim, the funder would usually be entitled to look to the claimant to reimburse the funder for the monies it has paid out. • If the costs of pursuing the claim turn out to be considerably higher than was envisaged when the funder and the claimant entered into the litigation funding agreement. However, a funder will seldom be keen to terminate a funding agreement because doing so can result in the funder losing the monies it has invested in the claimant’s claim up to the point when the funding is stopped. The detailed terms and conditions of any
