There are several recognised funding models used in the UK. These include:

1. Private funding

   This is the most common form of payment, and it is a good option for clients who want full control of their case and are comfortable funding the claim themselves. Private funding options include:

   • Traditional hourly billing: You pay legal fees at agreed-upon hourly rates.
   • Blended fee arrangements: Combining partner, associate, and paralegal input to keep overall costs proportionate to the complexity of the case.
   • Monthly or staged billing: Spreading costs over time or paying for each phase as it’s completed.
   • Fixed fees: For specific stages or defined pieces of work.
   • Flexible structures: Including capped fees or deferred payment plans to support cash flow.
     
     

   Benefits of private litigation funding Many clients prefer the clarity and control that comes with private funding. Here are some of the key advantages:

   • Full control over your case: You retain full autonomy over legal strategy, decision-making, and settlement discussions without the involvement of external funders.
   • No sharing of damages or settlement: You keep 100% of any compensation or settlement achieved (subject to legal fees and VAT), with no success fee or percentage payable to a funder.

2. Third-party litigation funding

   Third-party litigation funding sees an independent funder – not connected to the law firm or client – cover some or all of the legal costs. In return, the funder is paid a share of the damages if you win, often between 20% and 40%, or a multiple of what they invested.
   
   

   Before agreeing to fund a case, funders carry out detailed due diligence to assess the legal merits, potential damages, and enforceability of any judgment or settlement. If funding is approved, the funder bears the financial risk – meaning you generally pay nothing if the case is unsuccessful (subject to the terms of the agreement).
   
   

   While you retain control of your case, funders may require consultation on major decisions, particularly around settlement. All such terms are agreed in advance and clearly set out in a funding agreement.
   
   Benefits of third-party litigation funding
   Third-party litigation funding is used in high-value commercial disputes, group claims, and claims with realistic chances of success. Key benefits include:

   • No upfront legal costs: The funder pays your legal fees and other case-related expenses, so you can move forward without worrying.
   • Negotiation leverage: Backing from a professional funder signals that your case has been reviewed and is financially supported, which may encourage the other side to settle.

3. After the Event (ATE) insurance

   After the Event insurance is a policy taken out after a dispute has started. It protects you against having to pay the other side’s legal costs if you lose.
   
   

   ATE can also cover your own disbursements (costs your solicitor incurs on your behalf), which can be substantial. The premium is often deferred until the end of the case and is usually only payable if you win.
   
   Benefits of ATE
   ATE is best for claimants in strong legal positions who want to reduce risk while pursuing their case. Here are some of the main benefits:

   • Protection against adverse costs: ATE insurance typically covers the opponent’s legal fees if you lose your case. 
   • Cover for your own disbursements: Some ATE policies also cover your disbursements, such as court fees, expert reports, and barristers’ fees.

4. Before the Event (BTE) insurance

   Before the Event (BTE) insurance is a type of legal expenses cover that is taken out before any legal dispute arises. If you already have BTE insurance, you may not need ATE insurance or third-party litigation funding.
   
   

   It’s always worth checking your existing policies, or asking your solicitor to review them, at the start of any potential dispute.

5. No-win, no-fee litigation agreements 

   In no-win, no-fee agreements, you only pay if the case is successful. The two main types are: 

   • Conditional Fee Agreement (CFA): If you win, your solicitor charges a success fee – a percentage uplift on their standard rates – which is deducted from your damages.
   • Damages-Based Agreements (DBA): If you win, your solicitor receives a percentage of any damages or settlement recovered, typically capped at 50%. There is no separate success fee.
     
     

   If your case is unsuccessful, you do not pay your solicitor’s fees or any success fee. However, you may still be responsible for disbursements (such as court or expert fees) and your opponent’s legal costs, unless you have insurance.
   
   Benefits of no-win, no-fee arrangements
   While we do not offer no-win, no-fee agreements, we do advise clients on how these models work and whether they are appropriate for their circumstances. Benefits include: 

   • No upfront legal spend: You don’t pay legal fees while the case is ongoing, making it easier to start a claim.
   • Only pay if you win: Under both CFAs and DBAs, your solicitor is only paid if the case is successful.