Funding arrangements

The costs of litigation can be high and many litigants are unable (or unwilling) to pay for it out of their own resources. Litigation funding is a broad term which covers the various ways in which a party can obtain assistance in funding the costs of litigation. Examples include:

1. •

   third party or commercial litigation funding agreements

2. •

   retainer-based funding agreements

3. •

   insurance policies such as before the event or after the event insurance (BTE and ATE insurance)

4. •

   disbursement funding loans

This area underwent a fundamental change when the Jackson costs reforms came into force on 1 April 2013. The changes impacted practitioners’ strategic considerations when seeking to fund litigation. Transitional provisions apply to pre-commencement funding arrangements, as defined in CPR 48.2, and specific types of cases.