A Melbourne-based full-service commercial law firm has launched a funding alternative that could save small to medium businesses considering litigation a ton of money while significantly increasing net returns.
Logie-Smith Lanyon Lawyer has launched a product called Cost Certain Access to Business Litigation (CCABL), which the firm claims could reduce legal spend by as much as 66% and increase net return by as much as 50%, based on an average fee budget of a $1.5m claim in the Supreme Court of Victoria, compared to funding litigation alone.
“Too often businesses are prevented from pursuing a case, even when there is a strong probability of success. By removing the barriers to litigation – the serious impact on cash flow, high cost of quality legal representation and adverse costs risk – we will create cost-certain access to the courts for Australian businesses,” said Steven Harris, commercial litigation partner and designer of CCABL. “Companies considering a litigation claim, or those who have decided against it in the last six years, can now access litigation funding, while ensuring their business interests are protected.”
CCABL is the first litigation funding service available to small to medium Australian businesses looking to pursue claims between $500,000 and $2m, the firm said. It was specifically designed to minimise risk and costs commonly associated with litigation funding, like cost, which it minimises by allowing clients to pay a capped monthly legal spend and set a maximum for the case.
Cases will be assessed by Harris and the firm to determine real cost and potential outcome before Logie-Smith Lanyon Lawyers liaises with a panel of funders to select the best-suited funder for the case. A partnership will then be established between the litigant, the firm, and the funder and the litigant and funder will pay the capped monthly contribution up to the agreed limit.
CCABL clients will retain control of the case and the ability to provide day-to-day instructions on all matters. The firm and the funder will be paid their fees and commissions after a successful settlement or verdict. The funder will be liable for any adverse cost awarded and the client is protected from paying any additional fees or costs if the case is unsuccessful.
The firm collects the balance of any fees and disbursements monthly, with the accrued fees and the funder’s commissioned only being paid out if the case is successful.
According to the firm, a range of funders have already agreed to participate as members of the funding panel. Partner funders include Litigation Lending, Ironbark Funding, and Litigation Funding Solutions.
Related stories:
Irish Supreme Court spurns third-party litigation funding
Australian litigation funding giant expands in Asia
