BridgeMcFarlandSolicitors

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Bridge McFarland can offer you practical, uncomplicated advice, support & guidance when you need it most. Whether it be an employment dispute, family advice, an accident or negligence, life planning or moving house, let us help you.
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Our commercial team in Lincoln, Hull, Market Rasen and Grimsby prides itself on its sound business sense, commercial insight, local knowledge and first class understanding of the relevant legal disciplines ranging from employment law, business contracts, dispute resolution to agriculture and property development. From company formation to sale, succession, dissolution or dispute resolution, you can trust our team to deliver first class service and results.
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Funding Commercial Disputes

Bridge McFarland Solicitors can provide an integrated package of funding solutions for your own costs and disbursements (such as court fees and expert fees) and insurance against the risk of having to pay the other party’s costs. You simply choose what is best for you.

Home » Business Law » Dispute Resolution » Funding Commercial Disputes

Our team of experienced dispute resolution lawyers can offer a range of innovative and flexible funding options

You can view our 'Litigation Funding' brochure for more detailed information on the various funding options below.

The legal process can be lengthy, with some cases taking months, or even years, to resolve. This can put a heavy financial strain on both businesses and individuals in terms of paying your own costs.

The good news is that Bridge McFarland Solicitors can provide an integrated package of funding solutions for your costs and disbursements (such as court fees and expert fees) and insurance against the risk of having to pay the other party’s costs. You simply choose what is best for you.

Hourly rate retainer - A straight hourly rate basis, win or lose. You pay an hourly rate for each lawyer working on your case, depending on the seniority and experience of the lawyer and the nature of the case.

Fixed fee - An agreed fee for a particular item or stage of work.

Conditional fee (or ‘no win, no fee’) agreement (CFA) - If you lose the claim, you don’t pay any fees to us. You do pay disbursements (or expenses) such as court fees and expert fees, but these can be covered by ATE insurance. If you win, you pay our fees at our normal hourly rates, plus a fixed success fee of 20-100%. You will also have to pay disbursements, VAT and any ATE premium. You may be able to recover some of our fees and disbursements (but not the success fee or any ATE premium) from the other party.

Discount rate (or ‘no win, low fee’) agreement (DFA) - You pay our fees at agreed discounted hourly rates (of up to 50%) and disbursements. If you lose the claim, you only pay our fees at the discounted rates. If you win, you pay the difference between the discounted rates and our normal rates, plus a (usually smaller) success fee. You also pay disbursements, VAT and any ATE premium. You may be able to recover some of our fees (at the normal rates) and disbursements (but not the success fee or any ATE premium) from the other party.

After-the-event (ATE) legal expenses insurance - Insurance against the risk of having to pay costs to the other you lose your claim party. It also covers your disbursements (including court fees and expert fees). The ATE premium is paid at the end of the claim as percentage of damages and is self-insuring, meaning you only pay it if you win. The ATE premium cannot be recovered from the other party. ATE insurance can be used in conjunction with any of the above methods of funding your own costs.

Disbursement funding - Funding for disbursements (or expenses), such as court fees and expert fees. A funding arrangement is provided by a third party by way of a loan agreement. Simple interest is charged and the loan is only repayable at the end of the claim. The loan and interest are covered by ATE insurance meaning there is nothing to pay if you lose. Disbursement funding can be used in conjunction with any of the above methods of funding your own costs, but it must be used with ATE.

Damages based agreements (DBAs) - If you win the claim, you pay to us an agreed percentage of any sums recovered from the other party (a contingency fee). If you lose, you don’t pay any fees to us, but you will have to pay disbursements.

Third party funding - A third party provider funds your claim in return for an agreed multiple of costs or percentage of any damages (usually 25-40%) if the claim is successful

To arrange a consultation or to find out more about our litigation funding solutions, please contact us on 01482 320620, request a call back or enquire online.

Please note that the availability and suitability of these funding solutions (and the terms upon which we may be willing to enter into them) will depend upon our assessment of your case, including its merits, value and the other party’s financial position.

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Rob Ripley
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Mike Wilson
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View All FAQs
FAQs
How do fixed fees work?
We may agree to charge a fixed fee for a particular piece of work. The fee will usually be based on how much work we estimate will be involved. You will not be able to recover any more than the fixed fee from your opponent. Fixed fees are usually most appropriate for particular types of work or for stages in a case rather than for an entire claim. We routinely offer fixed fees for debt recovery and enforcement work and in relation to insolvency proceedings and procedures, but we will consider and discuss fixed fees in many other situations.
How does after-the-event (ATE) insurance work?
After-the-event (ATE) legal expenses insurance can be used in conjunction with an hourly rate retainer, fixed fee, CFA, DFA or DBA to protect against the risk of having to pay the other party’s costs, and your own disbursements (or expenses), if you lose the claim. The ATE policy premium is self-insuring meaning it is only payable if you win - if you lose you do not pay anything. The premium payable if you win is based on a percentage of damages and is stepped to increase at certain stages in the claim. You cannot recover the ATE premium from the other party even if you win, so it effectively reduces any recovery of damages if you win. Our relationship with a leading ATE insurer enables us to place clients on ATE insurance cover for commercial disputes without the need for expensive, time consuming and often unsuccessful applications to the insurers themselves.
How does an hourly rate retainer work?
At the outset of a case we agree an hourly rate for each lawyer working on the case. This will depend on the seniority and experience of the lawyer and the nature of the case. We then record time for any work we carry out on the case and send you a bill for our fees based on that time at regular intervals during or at the end of the case. Our charges will be the same whatever the outcome of the case. We will always provide you with the best possible estimate of any costs to be incurred in a case at the outset and throughout the case. In order to enable you to budget for those costs and make informed decisions about how to proceed at each stage, we will send regular interim bills during the case and update our costs estimates whenever necessary. In addition to our fees, you may have to pay disbursements (or expenses) such as such as court fees, expert fees and counsel’s fees.
How does a discounted fee agreement (DFA) work?
A DFA is a type of conditional fee agreement and works in a similar way, except that you pay a discounted hourly rate during the case and, if you win, you pay the difference between the discounted hourly rates and our usual hourly rates plus a success fee. If you lose, you only pay at the discounted rates. It therefore sits somewhere between a full CFA and an hourly rate retainer and is sometimes referred to as a “no win, low fee” agreement.
How does a damages based agreement (DBA) work?
A DBA is a form of conditional fee agreement, whereby we agree to share the risk in the case in return for a share of any damages recovered. If you win the claim, you pay to us a percentage of any damages awarded to you, but if you lose, you will not pay anything to us for our costs. You may still be liable for your opponent’s costs however. Our share of any damages (the contingency fee) will depend on our assessment of the merits, risk and value in the case but cannot be more than 50% of the sums ultimately recovered by you. This includes counsel’s fees but excludes expenses such as court fees or expert’s fees which will be charged in addition. If you win, you will usually be entitled to recover your legal costs from your opponent in the way described above for hourly rate retainers. Those costs will be assessed by the court on an hourly rate basis and you will be liable to pay to us any difference between the costs recovered from your opponent and the contingency fee and expenses. The amount recoverable from your opponent will be capped at the amount of the contingency fee. If you lose the case, you will not pay anything to us for our costs, but will still be liable for any expenses. You may also be ordered to pay your opponent’s legal costs. You may be able to take out after the event (ATE) legal expenses insurance against this risk.
How does a conditional fee agreement (CFA) work?
A CFA is a risk-sharing arrangement whereby we agree to take a share of the risk in the claim. A full CFA or “no win, no fee” agreement is where, if you lose claim, you will not pay anything to us for our costs. If you win, you pay to us our fees on an hourly rate basis plus a success fee. The success fee is a percentage of our fees based on hourly rates. The level of the success fee will depend on all of the risk factors in the case including our assessment of the merits and the prospects of success on your claim. If you win, you will usually be entitled to recover costs from your opponent, but the success fee is not recoverable from your opponent. You will be liable to pay to us any difference between the costs recovered from your opponent and the costs payable under the CFA including the success fee. If you lose, you will not pay anything to us for our costs, but will still be liable for any expenses, but you may be able to take out after-the-event (ATE) legal expenses insurance against this risk.
How does disbursement funding work?
Payment of court fees and other disbursements can be funded by a disbursement funding arrangement with a third party provided by way of a loan agreement. Simple interest is charged and only repayable at the end of a successful case. The loan and interest are backed by ATE insurance meaning there is nothing to pay if you lose the claim. Our relationship with a leading provider enables us to issue credit agreements to our clients directly.
What is Third Party Funding?
Third-party funding (or “litigation finance”) involves a third-party with no prior connection to the dispute, usually a specialist finance company, agreeing to finance all or part of the legal costs of the case in return for a share of any monies recovered. This form of funding can be used in conjunction with CFAs, DBAs and ATE (or before-the-event) legal expenses insurance cover. Third-party funding is a relatively new funding model and is generally only appropriate in higher-value cases, but is widely expected to become an increasingly common over the next few years. We have relationships with leading litigation finance providers and can obtain third-party funding in appropriate cases.

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