Lewis Silkin has launched a litigation funding panel to help clients get cases off the ground in a move that is expected to become increasingly common following the implementation of the Jackson reforms.
The firm has entered a formal partnership with litigation funding broker The Judge for the launch, which is branded LS Access. Funders Vannin Capital, Elite Insurance and Therium Capital Management are among the panel members.
Litigation funding using corporate funds or after-the-event insurance is expected to become more common as firms look to share the risk of running cases with clients. The introduction of damages-based agreements (DBAs) – or contingency fees as they are more commonly known – will allow firms to take a slice of the damages settlement should their client win the case.
Lewis Silkin partner Tamar Halevy said the funding option would be open to cases where the realistic damages would be above £3m and the costs budget is set between £500,000 and £2m. The costs to funding ratio, she added, would be set at one to four.
Traditionally funders can take several weeks to decide whether to fund an action, but under the deal with Lewis Silkin the funders are committed to responding to inquiries within five days. The panel will be reviewed regularly to ensure competitive terms.
Halevy said “The advent of DBAs promises to alter the marketplace for litigation funding dramatically, and third-party funding and ATE insurance will no doubt remain vital as options within the changing litigation funding landscape.”
Funding will be particularly suited to high-value cases such as trust disputes, investment disputes and professional negligence claims, she added.
It is not the first time The Judge has entered a partnership with a firm. In 2009 Mishcon de Reya agreed a delegated authority deal with the broker (29 September 2009), following the lead of Pinsent Masons.
For more on the latest developments in litigation funding see here.