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What is litigation funding?

Innovative finance providing a no-cure, no-pay and no-risk solution to claimants.

Litigation funding is non-recourse finance provided to claimants

Litigation funding is a service where a third party (the funder - Deminor) provides financial resources allowing a claimant to pursue claims through litigation or arbitration. The funder pays all legal costs and does not receive any remuneration or return unless the case is successful, and the claimant achieves a recovery. In the event of a recovery, the funder receives a share of the proceeds. If the case is unsuccessful, the funder loses its money, and nothing is owed by the claimant. Subject to regulatory restrictions in certain jurisdictions, Deminor as funder may also offer litigation management & support services in conjunction with litigation funding.

Conditions for funding

Litigation funding will only be available if the funder is convinced of:

  • Viable cause of action
  • Effective enforcement mechanism
  • Reasonable prospect of recovery
  • Reasonable profit for the funder commensurate with the risks incurred

Deminor does not apply a minimum threshold. Comprehensive due diligence is an essential foundation for successful litigation funding initiatives. Deminor’s due diligence exercise is conducted in two stages. See how it works

What costs are covered by Deminor’s funding?

Deminor’s funding covers all fees and costs in connection with the litigation. These fees and costs will be paid by Deminor directly to the service provider or court, so the client does not face any cash outlays during the entire course of the proceeding. Deminor’s litigation funding typically covers the following costs:

 

  • Lawyer fees
  • Expert fees
  • Court costs
  • Costs of arbitration institute and arbitrators’ fees
  • Security for costs (if applicable)
  • Adverse party fees (in case of loss)
  • Translation, travel and other out-of-pocket expenses

Types of claims

No type of claim is excluded from the benefits of litigation funding. As long as Deminor believes that the claim has merits, that its value can be objectively assessed and that it can be acted upon in a mutually agreed-upon manner, the funder may propose its services for nearly any type of legal case. Typical claims are breach of contract, violation of intellectual property rights, insurance claims, post-M&A claims, tort claims and conflicts between joint venture partners.

 

  • Breach of contract
  • Corporate law claims (shareholder and M&A disputes)
  • Anti-trust claims (individual or collective)
  • Losses on financial products
  • Insurance claims
  • Intellectual property claims (breach of patent)
  • Tort claims (losses caused by wrongdoing)

Get in touch with one of our experts.

Do you have questions about a case?

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 the e-book

ebook-litigation-funding

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 ...

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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...

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