Litigation finance is rarely out of the legal headlines nowadays, but the focus on the obviously attractive “big ticket” disputes – like consumer actions in the Competitions Appeals Tribunal, or international arbitration – belie the true picture of the disputes market.
For every headline-grabbing dispute, there are multiple smaller – but often just as complex – claims for which parties seek legal assistance. Often the parties involved are smaller or less-established enterprises for whom the business stakes are high if, for example, a supply contract is breached, an IP right infringed, or an investment is mis-sold.
Such claims are often overlooked for funding. Lawyers familiar with the economics of funded cases may have encountered resistance in the past from funders, or may just assume that no funder will consider a case unless it fits neatly into the much-discussed 1:10 costs to damages ratio.
Erso’s founders have long experience of modelling funding and insurance to this level of the market, having established TheJudge in 2000, a leading litigation insurance broker. Through Erso we have found it is possible to structure finance for these “SME” level claims, enabling parties to pursue their claims, mitigate the costs risk involved, and retain a healthy proportion of any award.
Our “SME” facility was launched in spring 2022 to address the economic barriers to funding for such cases, and we are pleased with the diversity of investments we’ve made, comprising a broad range of dispute types, both within the UK and across the EU.
- We provide funding commitments of between £100k and £500k for any or all of solicitors’ fees, barristers’ fees and disbursements.
- Working on a realistic funding to damages ratio of 1:6 we focus on an economic structure which gives enough scope to pay out a funder’s fee but give the claimants themselves a healthy return.
- We provide a fast-tracked process with decisions in principle within 7 days.
- Adverse costs cover can be included in the package via affiliated insurance broker, TheJudge who will search the market for competitive quotations. TheJudge may also advise on alternative uses of litigation insurance instead of a full funding option to manage litigation risk where economics are tight.
Please do get in touch if you’d like to hear more or if you have a case you would like us to consider.