Pursuing or defending a claim in court is expensive, but there are various ways you can fund a legal case, depending on your circumstances. In this guide, we’ll look at different options for funding a civil court case.
Legal aid
To be eligible for public funding, you have to meet certain criteria, which includes showing that the case is serious, that it is eligible for legal aid and that you cannot afford to pay the legal costs.
Third-party funding
An increasingly popular funding route, litigation funding is when a commercial funder pays some or all of the legal fees in return for a percentage of any damages awarded if the claim is successful. If you want to consider litigation funding, there are several firms such as Novo Modo that can advise.
Private retainer with solicitor
This is an agreement between a client and a lawyer where they pay for legal advice and services on an ongoing basis. This is different to a traditional retainer, where a lawyer is paid on an hourly rate.
Conditional fee agreement
This is an agreement which allows for legal fees and expenses to be paid only in certain circumstances. This usually means that if the case is unsuccessful, the client doesn’t have to pay for any expenses or fees which are subject to it.
Insurance
Once a legal dispute has begun, some may choose to take out After the Event insurance, which covers them for any liability should they lose the case. This means that their opponent’s costs and disbursements get paid, so it is usually taken out along with either third-party funding or a conditional fee agreement, in order to also cover the legal costs of the client.
Damages agreement
This is an arrangement whereby a fee for legal costs is only payable if a certain contingency is met. The client will only pay if a specified financial benefit, which is usually damages, is obtained. The amount is usually a percentage of any compensation received and if the case is unsuccessful, they are not liable to pay.
