Funding Agreement

 The Company’s standard form funding agreement provides that:

(a) the Company will pay:

   the client’s legal fees and disbursements;

   the client’s own reasonable fees and disbursements (if the client is an insolvency practitioner);

   the taxed costs payable by the client to any other party as a result of the dismissal

   or discontinuance of the proceedings or otherwise;

   and any security for costs ordered by the court in the proceedings;

 

(b) the Company will indemnify the client in respect of any adverse costs order made against him or it;

 

(c)  the Company is entitled to be reimbursed with all the costs paid by it in the matter from any settlement sum received by the client by way of a court judgment or order, or an earlier agreed settlement (the Settlement Sum); 

 

(d) in consideration of the Company providing such funding to the client, the client assigns to the Company an agreed percentage of the balance of the Settlement Sum (after the Company has been reimbursed with its costs); and

 

(e) the Company receives nothing if the client’s claim is unsuccessful.

 

The amount of the agreed percentage of the Settlement Sum that is assigned to the Company in accordance with paragraph (d) above is the subject of negotiations between the Company and the client based on their respective assessments of the potential risks and rewards of the claim the subject of the funding agreement. The percentage will usually be in the range between 30 and 45  Key considerations that are generally taken into account in the determination of the percentage include the following:

   the estimated amount of the claim;

   the estimated amount of costs for which funding is required;

   the current status of the claim and any proceedings that have been instituted;

   the estimated time period before the matter will be determined;

   and the prospects of recovery from the defendant, if the claim is successful.