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How litigation funding works

We have the ability to close funding deals in 4 weeks.

From initial assessment to closing
the litigation funding agreement

Following the client’s funding request and signing of a non-disclosure agreement, Deminor will perform a preliminary assessment of the claim on the basis of a case memorandum prepared by the client or his/her counsel. If the outcome of our preliminary assessment is positive, we will then move to a more in-depth due diligence (phase II).

We may already propose a broad range of pricing (funding terms) before entering into phase II of the due diligence so the client knows what to expect once the claim is finally approved. If following phase II of the due diligence we believe the case has a viable cause of action, it is submitted to Deminor’s investment committee who will decide if the case can be funded or not and on what terms. The client will be informed of the proposal that will be submitted to the investment committee.

Once we have secured approval from the investment committee, we propose a litigation funding agreement to the client. Following signing of the litigation funding agreement by both parties, the litigation can start and from then on Deminor will pay all legal expenses in connection with the litigation.

Man signing contract

 

Deminor’s decision-making and documentation process is one of the most efficient in the market. We are able to close litigation funding deals in 4-6 weeks, subject to securing the necessary information for case assessment.

Matt Cohen
Senior Legal Counsel & Country Manager U.K.

The litigation process

Deminor offers two possible options for the management of its litigation project. The client and his/her lawyer choose Deminor’s level of involvement. Due to regulatory restrictions in certain jurisdictions, Deminor’s role may be limited to funding only.

The client remains
the ultimate decision maker

Even if Deminor provides litigation management support services, the client remains the ultimate decision maker. Deminor does not have a veto right and will never impose a decision. However, some caveats are laid out in the contract to protect the interests of the funder, for example when the client wishes to terminate the contract or accept a settlement at conditions below fair value.

Process timeline

STEP 1

Client submits funding request

STEP 2

NDA is signed

STEP 3

Free initial assessment

Three tiered due diligence process: (i) first assessment, (ii) second phase full due diligence, (iii) Deminor Investment committee decision

STEP 4

Funding proposal shared

STEP 5

Negotiation and signing of litigation funding contract

STEP 6

Litigation process

STEP 7

Execution of the settlement or of the court judgement

STEP 8

Funder is paid

STEP 9

Case is closed

Do you want to learn more about Litigation Funding?

Why would a corporation make use of third-party funding for its litigation or arbitration claims? Does it work for all claims? How does it work and what are the steps from initial assessment to closing of the funding? These and many other questions will be addressed in our Litigation Funding e-book.

Download our e-book

ebook-litigation-funding

 

Get in touch with one of our experts.

Do you have questions about a case?

Further reading

Goods1_colour

Case study 1

An Italian company Vengari SpA set up a joint venture (‘JV’) with French company Gonier SA for the production of goods in a special common segment ...

Read more
Pipeline_oil

Case study 2

The trustee (‘Trustee’) of a Dutch company Nedoil NV (in bankruptcy), which was active in the production of equipment for the oil and gas sector, w...

Read more