Third Party Funding

 

Litigation funding covers the costs of running your litigation against defendants, providing certainty that the costs of litigation will be met until your case is concluded. A funder can fund the legal fees, experts’ fees, disbursements and tactical costs of running a successful litigation, on behalf of a litigant or their acting solicitor. There should be no liability on the part of a litigant, to repay the funder any capital deployed, until the case has successfully concluded.

 

If a case is unsuccessful, the funder bears the financial loss. That is their risk and how they price their investment. The client should always retain the major part of an award and no funder should ever take a success fee that provides otherwise.

 

Where a client is facing a ‘David v Goliath’ battle, litigation funding can provide a level playing field whereby it limits the opponents ability to force the client into an early settlement or to run out of money, which could damage the client from being able to pursue their claim further.

 

For corporate businesses, litigation funding and insurance provides an off-balance sheet solution, that can relieve pressure on legal spending. Legal fees can often increase as the litigation progresses and this makes it very difficult for Financial Directors and controllers to budget accordingly. 

 

How much do funders charge?

 

If a case is successful, the funder will take their invested capital back plus a success fee. The success fee is often, not always, based on a multiple of the funder’s investment or a fixed percentage of damages. This can vary from one funder to the next and is often based on the overall risk assessment and variables of the case presented. These returns are paid from the damages that the losing opponent is ordered to pay.

 

What makes a case fundable?

 

Funders will look for cases with good merits which requires the case to be strong in terms of liability, causation and a financial settlement arising. The Funders will look at how long the case has to run to the final hearing and they will also look to see how the case is currently advancing. The funders would require a written opinion on the merits of your case to assess this fully.

 

Costs v Proportionality 

 

Funders will require a detailed Costs Budget so they may assess the total costs of running your case through to trial or final hearing. They will evaluate the overall costs of investing in your case as well as assessing a realistic value of where the case may actually settle at. They are looking to see that the costs are proportionate to the value of the case. Some funders will expect your legal representatives to work on some form of conditional fee agreement and others will not insist upon this.

 

Creditworthy Defendant

 

In our experience funders are looking to see if the defendant(s) have the ability to satisfy the damages being claimed, coupled with their asset position and if those assets are easily traceable and accessible. If the defendants have insurance cover then this is a more attractive consideration for the funders.

 

Legal Representatives 

 

It is important with all funders that your legal team have the relevant experience in the area of law to which your case relates. Equally it is important that where you have Counsel instructed to act that they also have the relevant experience. Funders are not looking for the cheapest representation but the right expertise. If you do not have a Solicitor at present then speak to our team who may be able to recommend some firms to you.

 

Adverse Costs Insurance

 

It is a requirement of most funders for there to be adverse costs insurance in place (ATE) in order for funding to proceed. This is because the funders do not wish to be liable for the adverse costs award should you lose your case. (Please refer to our section on ATE for more information as to this type of insurance cover). The funders will however, look to include within their overall funding commitment the cost of this insurance cover. Maxima can help to source this cover for you, as it will be part of our overall risk assessment of your case requirements.

MAXIMA/DAS - OPTIMISE SCHEME

The ‘Optimise’ Scheme has been purposefully designed to assist smaller or niche firms to have access to a Delegated Authority Legal Expenses Policy for their client’s claims. We recognise that smaller firms that may not have the volume of cases per month, to meet the criteria of most insurers to be granted a full Delegated Authority scheme, yet receive good claims and have the necessary expertise to warrant receiving the same benefits, as a much larger practice. For more information as to why we have brought this product offering to the market click here

Clinical Negligence

Key Cover Benefits

• Full Part 36/interim costs orders
• Own disbursement cover
• Counsel's Fees on Non CFA. Portal Access
• Premium Shortfall Cover
• Choice of level of indemnity
• Cover backdated to retainer
• A rated Insurer

Key Scheme Features

• Delegated Authority
• Quick underwriting turnaround
• Streamlined User Friendly
• Relationship Manager
• Competitive premiums

Personal Injury

Key Cover Benefits

• Full Part 36/interim costs orders
• Own disbursement cover
• Counsel's Fees on Non CFA. Portal Access
• Premium Shortfall Cover
• Choice of level of indemnity premiums
• Cover backdated to retainer
• A rated Insurer
• Cover for RTA/Non Motor/Work/sexual abuse
• Asbestos/Mesothelioma

Key Scheme Features

• Delegated Authority
• Quick underwriting turnaround
• Streamlined User Friendly
• Relationship Manager
• Self insured and deferred

Here is what Ruby Imran from Ford Solicitors Limited had to say about the scheme :

"Maxima Group are a company who provide a fantastic service and keep you updated with any changes on a regular basis.  They touch base every so often and ensure that any queries are dealt with in a friendly and professional manner.  I would highly recommend the Optimise Personal Injury Scheme and the value it has added to our firm.
I would most definitely recommend them to my colleagues.  Keep up the good work Vanessa".
 

To apply to become an Optimise Scheme member please click here or to discuss the scheme benefits further please contact Vanessa or Samantha on 0333 772 0454

 

ATE Insurance

After the Event Insurance (ATE), also known as Legal Expenses Insurance, is where an insurance company provides an indemnity for your legal costs up to the level of cover taken out, in the event you should lose your case.

 

ATE insurance is available only to litigants who are already involved in, or who are contemplating, a legal claim. It is widely used in the United Kingdom for cases being litigated or arbitrated and it can also be used for international litigation or arbitration disputes. ATE can be used on its own or in conjunction with Third Party Funding.

 

ATE insurance is usually taken out to protect the adverse costs potential exposure, however it can also include cover for own disbursements costs and sometimes a proportion of your legal costs. However, in order to get cover, your case needs to have good prospects of succeeding. Some insurers, prefer different case types over another, have different levels of cover available, different terms and conditions and various premium options. We will clearly set out the pros and cons of each which will help you to make a fully informed choice.

 

ATE Premiums

 

Some of the options can include fully deferred, part deferred, upfront and staged premiums. This will depend on the basis of how you are funding your legal costs and the risks associated with the litigation. Where clients cannot afford to pay for their legal fees and the additional costs of insurance and disbursements, then Third Party Funding may be a better solution for you and we will consider carefully with you, what are the best options available for your particular case and circumstances. Please take a look at our Third Party Funding section.

 

Why Maxima

 

There are various insurers in the market place, some are ‘A’ rated and others are ‘unrated’. Maxima carry out their due-diligence on the various insurers that we work with, to ensure that they are reputable, financially strong and can meet the level of insurance that you require. Maxima are specialists in the ATE Insurance market and have placed cases from as little as £20,000 to millions of pounds worth of insurance cover on a single case. We differ from other market competitors in that our service is personal, creative and focussed on managing our clients expectations, as well as their case requirements.

 

ATE & Funding Proposal Form

 

Media and Entertainment

Media and Entertainment Disputes

 

We work with clients across the Media, Entertainment and Creative Industries and understand the financial and reputational impact legal disputes can often cause, and the resultant cost to resolve once they arise.

 

The cost of bringing a claim or defending an action can be significant and with the ever evolving world of technology and digital music, the exposure our clients face is expanding, which can often affect a corporate brand, a career, an image or an individual.

 

Over the years, Maxima have worked with well-known bands, artists, songwriters, media companies and celebrities, who have had a need for funding, or have just preferred to utilise external funding for their legal costs and expenses rather than utilise their own income.

 

Confidentiality, and making sure we understand our clients’ circumstances and requirements is paramount to us, and a vital part of the service we offer at Maxima. For details on how third party funding works, please speak to Vanessa Andrews or see our Third Party Funding page.

 

 

Media and Entertainment Protection Cover

 

It is always best to protect yourself or your company in the first place from the inherent litigation risks of the Media & Entertainment Industry. Through Maxima we have access to specialist and comprehensive insurance products to protect you or your company in the event you need to defend a claim being brought against you. Claims could stem from a number of risks but to name a few:

 

•   Defamation including Libel & Slander   •   Invasion of Privacy   •   Cyber & Privacy Liability   •   Intellectual Property Infringement   •   Data Hacking   •   Advertising and Personal Injury   •   Comprehensive Media Liability   •   Breach of Contract   •   Blanket Professional Indemnity

 

As an individual, any claim that affects your reputation or privacy could have immediate and long term career implications, so having the protection of an insurance policy to pay your legal costs provides peace of mind as well as financial assistance.

 

As a business, as well as the exposure of reputational damage, with the expansion and increasing reliance on technology, the risk of suffering a loss related to problems with computer systems or holding sensitive customer data continues to grow. If your business retains personal information on clients or customers, including names, addresses, bank details and other sensitive data any damage or unauthorised access could lead to legal and regulatory costs as well as reputational damage. This could affect your business’ ability to defend any claims, if you do not have insurance protection in place.

 

Click below to download

 

Media Insurance.pdf

 

To arrange a quotation please contact us with your requirements and we shall use our experience and specialist contacts to source appropriate cover for you.

 

Creative and Bespoke Solutions

Not every case fits squarely into the market's preferred model.

 

Where Maxima’s experience and creative approach become of greatest value is here. We don't look at a case as a simple form filling exercise; we look to see what the best options are for the Client. We have relationships with bespoke insurance markets that can develop unique one off solutions, as well as respected relationships with funders that allow the funding to be modelled to suit.

 

Each client's circumstances are different, together with their attitude to risk.  Our experienced multi-field experts will help you find or create a solution that meets your individual requirements.

 

Here are just a few examples of clients that have come to us and we have tailored a specific solution to meet the exact needs of the case:

 

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A Barrister was working on a case on a direct access basis but the client had run out of funds.  His client needed funding to cover costs of a forthcoming mediation and to cover the barrister's costs to trial if necessary.  We were able to secure a funder to allow the case to continue and remove all risk from the client.

 

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A client needed an indemnity bond for a security for costs application as the ATE insurance that the client obtained was not deemed adequate security for the courts at that time.  The application was being heard within a short timeframe from our instruction.   We were able to secure an indemnity bond on behalf of the client that the court accepted and the other side's application for security was dismissed.

 

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A client whose Solicitors and Counsel were engaged on a fully contingent basis, required funds or an indemnity to pay £50,000 billed fees for an expert to attend a trial listed for 4 weeks.  We were able to create an alternative risk policy to cover the costs of the expert in the event the case lost and to pay out within 14 days post trial.

 

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A Solicitor approached us, having already tried to source insurance through another broker who had not been able to secure cover on their behalf.  On looking at the various insurers' reasons for rejecting the case, it was evident that their main concerns had not been fully addressed.  With further explanation we were able to get the case accepted and cover incepted, even though it had previously been declined by 7 insurers.  The level of cover sought was £1.1million.

 

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Whatever the hurdles for your case may be, whether financial, risk hedging, or looking for bespoke insurance cover, then please contact us and we will always endeavour to find a solution where possible.

 

Intellectual Property Insurance

What is Intellectual Property Insurance?

 

Intellectual Property Insurance covers your business for the legal cost of pursuing infringement or theft of your Intellectual Property. It can also pay to defend you against allegations of infringement.

 

The main categories of cover are:

• patents
• design rights
• trade marks
• copyright
• licence protection
• passing off

 

How can Intellectual Property Insurance benefit my company?

 

It is often expensive to bring any claim for losses or damages caused, as a result of another party having infringed on your Intellectual Property rights. It can often be a complex and specialist field and thus the need to have access to the necessary funds to afford the best expertise, should be a choice available to you.

 

IP insurance, is there to protect you in the event a competitor steals your business model, designs, applications or ideas. Equally it can provide cover if a licensee strays beyond the limits of their licence or if a new competitor makes a legal challenge against what you thought was rightfully yours.

 

IP insurance can be bought on an annual basis to protect your company, in the event of a claim coming about in the future. This can be very cost effective when comparing to the requirement of needing an IP (After the event) insurance policy, to cover the costs of an ‘actual claim’ to be pursued. For this type of cover please refer to our After the Event insurance section.

 

Cover can be obtained up to £10M levels of indemnity and can cover UK or worldwide cover.

 

Click below to download

 

Intellectual Property Rights pdf.

 

For further details on this product, please contact us via email or telephone.