How Litigation Funding Assessments Are Made

When a funder makes a decision to support a case they are doing so for commercial reasons. Therefore the assessment process is methodical and in knowing what a funder looks for when assessing a case for potential funding, you are able to assess your own case before applying for funding.

Merits and Prospects of Success

The funder will be looking for counsel’s opinion or the solicitor’s view as to the strong merits of the case and prospects of success (being above 60%).

Claim Size Against Costs

How much does a claim need to be worth in relation to projected costs of running the case? Funders look for a ratio of at least three to one between the value of the claim and the projected costs, for example a £300,000 claim with £100,000 in projected costs is roughly the minimum territory worth considering.

The Defendant’s Ability to Pay

A judgment against a Defendant who is unable to pay will be of little value to the claimant. Funders seek to establish whether a Defendant has sufficient assets and/or insurance to satisfy any award which is made against them.

Stage of the Case and Evidence Available

Note: Understanding the civil court process will also be a factor for funders, as they prefer to finance cases with solid evidence already collected and tested, as opposed to very early untested claims.

Your Legal Team’s Track Record

Funders will assess your legal team and view their experience in relevant cases and how they can complete the dispute in the best way forward. This is important as they will expect your legal team to have estimated the costs and the time it will take for the case to be completed. For Litigation Funding, see https://www.novo-modo.co.uk/litigation-funding.

By going through these points and being as honest as possible in your answers, you will get a clearer idea of whether or not your case will get funding.