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.

Your success is our success: We are only paid when we win or settled your case.

Deminor handles all litigation costs and receives a percentage of the losses recovered.

Success Rate

81%

Find out why

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)

Funding can be provided for litigation pursued in courts and tribunals but also for arbitration proceedings with the client being plaintiff or defendant.

The only types of litigation excluded from the possibility of funding is when there is no reasonable prospect of success, when there is no quantifiable success or when the total estimated litigation budget is too high in comparison with the possible pay-out.

The benefits of Litigation Funding

Litigation funding provides access to justice for claimants who may not have the resources available to pursue meritorious claims. Furthermore, claimants who may have the resources available may prefer to allocate their working capital to their core business. Working with Deminor also provides access to Deminor’s decade long experience in managing complex litigation projects in more than a dozen different jurisdictions.

Optimal allocation of working capital

Litigation initiatives may divert working capital away from value-adding activities and core business initiatives, or companies may not have the cash flow required to invest adequately in the litigation process.

Deminor’s services plug capital gaps and remove risks associated with unpredictable legal costs and outcomes. We offer non-recourse financing, removing all downside-related risks for our clients: if you don’t win, we don’t get paid.

Optimal use of resources within the legal department

By leveraging third-party funding to pursue claims that would otherwise have remained dormant, a company’s legal department is transformed from a cost centre into an ancillary profit centre.

Depending on local regulations, clients may also delegate the management of the day-to-day litigation process to Deminor. Deminor helps its clients ensure that their in-house legal teams can focus on assisting the growth of their core businesses. Moreover, Deminor remains flexible and is receptive to involving in-house legal teams in key strategic phases of the claim-cycle, while giving in-house lawyers the opportunity to be active in the process, if desired.

Sharing risks

Legal costs can be unpredictable. In jurisdictions where costs are high and litigation comes with substantial risks, litigation funding offers opportunities for risk management. Deminor is receptive to sharing costs and risks with clients.

Achieving optimal recoveries

Working with Deminor gives access to our diverse network of international legal professionals, economic experts and enforcement specialists, which will increase the chance of maximizing recoveries. Deminor’s IT infrastructure and in-house expertise will also help managing costs which should lead to a higher net recovery.

Find out what makes us different

Our multinational team has the prowess to litigate anywhere in the world.
We offer transparent, objective advice, leaving all settlement decisions in your hands.
We take care of all procedural aspects of litigation, freeing you to focus on your business.
Our support includes total funding of your case as well as law services.
Deminor has over 25 years of experience in supporting commercial litigation.
Track real time case updates through our secure MyDeminor platform.

erik-bomans-olivia-depatoul-deminor-wwl-thought-leaders

Deminor team members recognised as ‘Thought Leaders’ in Who’s Who Legal 2020

According to the 2020 edition of WWL, Olivia de Patoul (Senior Legal Counsel for the Asia Pacific Region) is 'well recognised among sources who single her out for her deep expertise in recovery claims and litigation funding across Asia-Pacific'. Erik Bomans (CEO) 'brings extensive experience as both a lawyer and a funder to bear and is well versed in the intricacies of corporate law and investments'.

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

Examples of Litigation Funding cases

How does Deminor assess cases? Example with a M&A Dispute in Asia

Background

Deminor worked closely with a Hong Kong law firm which was seeking funding for an HKIAC arbitration, with Hong Ko...

Litigation funding supports a partner in a joint venture

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 ...

Assignment of claim by a company in bankruptcy

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...

What is litigation funding?

Litigation funding is non-recourse finance provided to claimants

Your success is our success: We are only paid when we win or settled your case.

81%

Conditions for funding

What costs are covered by Deminor’s funding?

Types of claims

The benefits of Litigation Funding

Optimal allocation of working capital

Optimal use of resources within the legal department

Sharing risks

Achieving optimal recoveries

GC of a Scandinavian pharmaceutical company

Find out what makes us different

Deminor team members recognised as ‘Thought Leaders’ in Who’s Who Legal 2020

Get in touch with one of our experts.

Do you want to learn more about Litigation Funding?

Examples of Litigation Funding cases

How does Deminor assess cases? Example with a M&A Dispute in Asia

Background

Litigation funding supports a partner in a joint venture

Assignment of claim by a company in bankruptcy

Subscribe to our newsletter

Deminor's Worldwide Offices

Brussels Office

Luxembourg Office

London Office

New York Office

Milan Office

Hong Kong Office