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Disputes Funding

The smart choice for organisations to turn cases into cash flow

Got a strong claim (or claims) you aren’t pursuing because of the likely costs – or the risk of not winning? Tying up company money pursuing legal cases in these straightened times can be avoided using dispute financing – an increasingly popular way to pay for the cost of pursuing disputes by using a third party.

Clyde & Co is a leading global law firm specialising in the transport, infrastructure, energy, trade & commodities and insurance sectors. We have formed an association with LCM, a specialist in providing commercially viable tailored litigation finance. Together, our advisory services help clients create new business opportunities, de-risk litigation and release resources back into the business.


How does disputes funding work?

In a funded dispute you pay nothing towards legal fees as the case progresses – these are paid by a third-party lender who has no direct interest in the litigation. When the case is successful, the lender receives its investment back, plus a pre-agreed margin that reflects the risk incurred. You get all the rest. If the case is unsuccessful, the lender gets nothing.

Key benefits:

  • Reduced financial risk
  • Preservation of cash for operating activities, rather than dispute resolution
  • Provision of adverse cost indemnities
  • Dispute costs are removed from the P&L and balance sheet “drag” is eliminated
  • Funding is non-recourse

Find out more about our Disputes Funding offering

Download the brochure

Funded portfolio

Traditionally, funders have financed single, isolated claims. Funding of a single claim carries a high degree of risk for the funder because if that claim is unsuccessful the funder will not recover its investment.

Multiple claims can be packaged into a portfolio and the financial risk for the funder is diversified across the book resulting in lower capital risk and therefore a lower return charged by the funder.

How it works:

  • A portfolio typically consists of a minimum of three claims
  • The funding costs for a portfolio are lower due to the decreased risk profile relative to a single case
  • Cases may be added into a portfolio over time and the funding facility can be adjusted accordingly. A framework agreement can be created with just one case
  • A portfolio can comprise different types of cases and include low value claims as well as defence cases

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Contact us for more information

Ben Knowles
Ben Knowles

Partner

Hery Frédéric Ranjeva
Hery Frédéric Ranjeva

Partner

Maurice Thompson
Maurice Thompson

Partner