The insurance cover available deals with exposure to your opponent's costs (if you lose your case) and your own legal expenses (up to the specified levels). The payment of our legal fees for acting on your behalf under Advantage will be set out in a conditional fee agreement.
The way in which dispute resolution is funded has been the subject of much debate, not least as litigation funding can often be the key issue for clients when deciding whether to pursue or defend a claim. Traditional methods of litigation funding have been widened by the introduction of conditional fee agreements, under which clients pay different amounts for legal services depending on the ultimate outcome of the dispute or litigation. When coupled with insurance cover or third party funding to cover the exposure to costs not already provided for under a conditional fee agreement, the litigation funding solution for clients can be one which both reduces risk and strengthens litigation strategy.
The Advantage conditional fee agreement is an agreement between you and Pannone LLP under which we agree that you will pay our legal fees at a discounted rate and you will only be liable for additional fees if you win your case. Your potential exposure to your opponent's legal fees and expenses if you lose and your own legal expenses will be covered in whole or in part by insurance.
You will pay our fees at a discounted rate on the usual ongoing basis, as a result of which we will share the risk with you. These are the non-conditional fees and the level of discount (up to 100%) will depend on the strength of your case as determined by the early risk assessment. The additional part of our fees which would take the level of non-conditional fees up to our standard rates are the conditional fees; these are only payable if you win and the majority can usually be recovered from your opponent in those circumstances. Where the level of discount is 100% there will be no fees to pay during the course of the claim.
The Advantage conditional fee agreement also has a success fee. This is an uplift on our fees and is only payable if you win. The success fee is up to a maximum of 100% and reflects the risk we are taking in respect of our fees and the overall risks in the case.
If you win, you are liable to pay:
- our non-conditional and conditional fees
- your legal expenses
- the success fee
- premium
- VAT
However, you will normally be entitled to recover all or part of these costs from the losing party. If you win and we agree the level of costs which will be paid by the losing party, you will only be liable to pay the difference between the fees due and the amount recovered. The exact level will depend on the amount recovered from your opponent. If you win but we are unable to agree costs and/or the success fee with your opponent, the amount of costs payable by your opponent will be decided by a court assessment. If you win but your opponent is unable to meet any costs order made against, you remain liable to us for the payment of those costs.
If you lose, you are liable to pay:
- our non-conditional fees (payable at the discounted rate on an ongoing basis in any event)
- your legal expenses, if any, in excess of the insurance cover
- your opponent's legal fees and expenses (including any success fee and insurance premium), if any, in excess of the insurance cover
- VAT
You do not have to pay any of the conditional fees or the success fee if you lose. In this way, even if you are not successful in the litigation, you will have transferred a significant share of the financial risk to us.
The overall effect of litigation funding under Advantage is a significant reduction in your litigation costs as a whole and a minimal costs exposure in terms of your opponent's costs. As a result, this method of litigation funding can give you a position of strength in relation to your opponent.
To speak with a solicitor in the Dispute Resolution team click here or call us on 0800 840 4929.
