How many clients with strong claims have you seen walk out of your office because they either:
- a) they did not have enough money to proceed?;
- b) they were too scared to proceed because of the opponents cost exposure if the case was unsuccessful?
In Australia an estimated 35% of submitted to solicitors do not proceed due to the reasons above. It is widely accepted that in the absence of a litigation funder and/or litigation insurance to offset the risk associated with adverse costs, many plaintiff cases would not come to fruition. This equates to a significant amount of lost billable hours, expected to amount to a multi-million dollar figure.
Many law firms outside the big 4 are not in a position to take on risk on behalf of the client, as Australia moves towards contingency fees. However, litigation funders and insurers can pave the way for more law firms being ‘in the game’ when it comes to getting justice for more people. Therefore, building an effective working relationship between lawyers , funders and insurers is essential for growth. Building an effective working relationship starts with getting to know each other.
Getting into the mindset of the leading litigation funders will also help to save lawyers wasted time submitting applications for funding which were never going to be considered. The option to use a respected and connected broker like Vie Legal Insurance could save the time spent shopping around every funder in the market. Read on and you could even save yourself that one phone call….
“The biggest challenge for any funder is the difference in the knowledge between lawyers and law firms. It results in the same level of challenge for lawyers – a significant waste of time”
The following 5 things you need to better understand your litigation funder: