Additional Options

Lime Finance provides litigation loans but there are other funding / insurance options for litigation.  As a general principle, the more risk you transfer to funders / insurers, the higher the cost to a successful case.

Funding / insurance elements are often combined into an overall client package.  For example, when Lime Finance lends to cover disbursements in a medical negligence claim, the solicitor usually works on a conditional fee agreement and the client often has ATE insurance to cover the disbursement costs if the case is unsuccessful.

Funders who Invest in the Case

These funders don’t lend, they directly fund the case as an investment, and they are prepared to lose all their investment in a failed case.  However, in return, they require a share of the settlement in successful cases (circa 30%).  A leading provider is Harbour Litigation Funding, or you can find a list of providers via the Association of Litigation Funders.

These funders will only consider larger cases where there is a significant potential financial settlement.

Insurance Options

It is possible to insure your disbursement costs and any potential adverse costs, so that these costs are covered if your case is unsuccessful.  Disbursement costs are in addition to your solicitor’s fees but still necessary to pursue your case (such as, court fees, medical reports, expert witnesses, investigations etc).  Adverse costs are the costs of the other side that might be awarded against you if your case fails.  (For most personal injury cases the qualified one-way costs shifting – QOCS - regime protects against any adverse costs so that adverse costs insurance is not needed).

Your solicitor should have details of insurance providers and their terms. 

N.B.  Some elements of legal expense cover may be included in your existing home or car insurance policy.  It is worth checking.

Conditional Fee / Damage Based Agreements

Often called “no win / no fee” agreements, whereby a solicitor and / or barrister agrees to waive their fees if the case is unsuccessful.  However, if the case is successful, the relevant legal representative gains a financial uplift, as specified in the agreement. 

These agreements do not usually cover disbursement costs, which are still payable by the client, and they do not cover adverse costs if they are awarded.