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ARTICLE · 04 AUGUST 2016

A Guide To Financing Litigation Costs

Litigation costs are often thought of as a hurdle to enforcing rights but they need not be.

United KingdomLaw Practice Management

DON'T PANIC

These immortal words are inscribed in large friendly letters on the cover of the Hitchhiker's Guide to the Galaxy but DON'T PANIC could as well be said to a prospective party when the question 'how do I pay for all of this?' rears its ugly head.

Litigation costs are often thought of as a hurdle to enforcing rights but they need not be. Indeed, today, the range of possibilities in this area to cover legal expenses, help the client with their own costs and for protection in the event of adverse costs has never been greater.

We still have the traditional 'pay as you go' model of funding. As lawyers we like this of course because it means we get certainty of payment win or lose. It is however an inescapable fact that the financial strain of high costs – especially in cases that may run to trial or to a late stage mediation, make litigation often prohibitively expensive save for the most well-heeled of clients. There are however alternatives.

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