Help fund the legal costs of people who can’t afford to commence or take to trial legal cases against individuals and corporations.
Just ISA is an innovative finance ISA that ultimately uses the investment from the bond for litigation funding. Specifically, the Just ISA seeks to fund commercial litigation cases focusing on cases against corporations and individuals, one of the areas being professional negligence.
There are many litigants with large cases which they cannot afford to commence, let alone ultimately take to trial. The cost of instigating proceedings and obtaining specialist expert, witness evidence is more than litigants can afford to pay out of their existing resources or income. These are usually already depleted when the Claimant’s business or personal financial situation has suffered as a result of the very issue for which they now wish to sue, and which they cannot now afford to fund.
There are consequently, a significant, and growing, number of businesses in the UK, the US, Australia and Germany who are all offering litigation financing, some of which are listed on the London Stock Exchange.
The cases chosen by the litigation funder will:
N.B Involved in the whole process are our professional advisors: Praxis IMF & Knights and our business associates, More Group Security Trustees.
The primary risk is insured, with premiums paid out of the amount which is lent to the litigant as a condition of offering funding. Our experience of the business model dictates that there are two areas when an investor can experience problems without proper protection namely:
• Non-assignment of the ATE policy to the investor to secure his position.
• Misappropriation or misuse of investor’s cash. In order to give investors peace of mind in both these respects, Creative Funding Solutions (CFS) has contracted Knights 1759, a leading 100+ partner law firm to do the following:
• Receive the funding providing under the funding agreement to release in agreed stages.
• Ensuring the assignment of the ATE policy and all other formalities are completed before any monies are released.
• Make premium payments to acting ATE brokers, and make agreed disbursements to the lawyers acting in the case at specific stages in the litigation.
• Receive the contractually agreed share of damages or ATE proceeds on completion of the case into their “Client Account” and to distribute this in accordance with the terms of the funding agreement.
• In addition to the above, before Knights commence their process, they ensure that any ATE provider that is contracted has had extensive due diligence carried out by the broker.
After The Event (ATE) Insurance is a single risk policy providing a pre-arranged amount of cover for:
In some cases a limited amount towards “own costs” including Counsel’s fees. The availability of and rates for ATE insurance are case-specific. The risk, (the need to sue), has already arisen. The underwriter sets the rate by investigating the claim and assessing the prospects for and against the case winning. The underwriter’s art is a mixture of legal experience, skill and the application of agreed risk parameters (the risk matrix), through which he can predict the likelihood of cases winning with a good degree of certainty at the preliminary stage.