Litigation Finance2019-03-22T15:10:05+00:00

Quanta Litigation Finance

The Quanta Capital Litigation Finance proposition differs from most Litigation Funders and uses a traditional financing approach, delivered in a modern and innovative way. The necessary finance is provided to either the Law Firm or Client depending on the model, and a fixed monthly interest is charged for the rolling amount borrowed, but typically deferred to the end of the case. This together with a facility fee which is added to your loan means that there is clarity at the outset of what the finance will cost, without Quanta having to take a significantly disproportionate or ‘Champertous’ interest in the running and subsequent outcome of the case.

Irrespective of whether you are an individual or SME who needs ‘access to justice’ and a ‘level playing field’, or you’re a large corporate who doesn’t want the burden of funding a case and the uncertainties that comes with it; Quanta can provide the financial support you need to run the case and often on a non-recourse basis.

Key Quanta Benefits

  • Tailored financing on flexible terms, bespoke to the specific case
  • Pre-approval for total case funding schedule up to case conclusion
  • Transparency of fees without having to concede a proportionate of awarded damages
  • Non-compounded Fixed interest rates for the duration of case and only applied to ‘drawn’ funds
  • Limited outlay as both the facility set-up and interest fees are rolled into the loan
  • Litigation without financial risk as all litigation loans are coupled with an appropriate ATE insurance policy

Litigation Finance FAQ’s

Solicitors and Barrister are obligated to support the best interests of the Client and may include the options that Quanta Capital Litigation Finance provides, alongside other alternatives that they believe to be suitable. Quanta do not ask to be recommended or promoted over another option and offer no incentives to do so.

Quanta will ask you to complete a short fact find document which enables us to become more familiar with both the case and your firm (if you have one) and to undertake some necessary due diligence checks. This may include use of a credit reference agency. We can only provide financial support if an application is completed and is subsequently approved.
Finance can be provided in most Litigation and Legal disputes which is heard in an English court under English Law, where there are clear prospects of success.

Loans can be used to cover all scheduled legal fees, court costs and disbursements. This includes the use of experts such as counsel, accountants and investigators.

Each case is different and depends on the ratio of expected costs to likely damages award. Once understood Quanta will work to agree schedule of costs and an agreeable drawdown time table with the relevant parties. We will automatically allow for a contingency amount as necessary.

If at any time the expected costs significantly change from the initial schedule, Quanta will look understand the requirement for additional costs and may agree to an extension of the facility.

Each case is assessed on its own merits and individual risk factors, however there are a number of pre-requisites that need to be confirmed prior to being approved for Finance. These include;
• Client needs to be formally retained by an approved Law Firm
• A confirmed schedule of costs and a preliminary assessment of the damages
• The 3rd party must pass a security of costs assessment
• Prospects of success needs to be independently assessed as at least 60%
• The Client will need to satisfactorily pass a Quanta credit assessment which will include use of a credit agency
• The case is within the respective limitations and final hearing is not within 6 months
Finance can be applied for at any time during the legal proceedings, however we will not approve a loan until the minimum criteria above has been satisfied. This subsequent approval may be subject to secondary conditions such as the provision of more details to support the lending decision and assessment of risk.
Once a facility has been approved, funds will be provided according to a pre-agreed draw down schedule, however a flexible approach is taken in which the schedule can be altered during the lifecycle of proceedings with the agreement of all parties. For the avoidance of doubt all drawdowns are only completed with the explicit agreement of the Client. Funds are realised in line with the above directly into your Firms Client account.
Most loans are offered on an unsecured and non-recourse basis typically using a commercial lending agreement; however, both the Client and the Firm must subscribe to respective agreements which ensure that the Financial commitment undertaken by the Clients is repaid under a deed of priority as soon as a settlement is paid into the Law Firms Client account.
Quanta does not typically require the Law Firm to offer any insurance or financial security when providing Litigation Finance, however Quanta does require the Law Firm to be regulated by the SRA and that a standard valid PII certificate is in place for the duration of the Case.

Quanta does require the Client to take out insurance to protect against the risks of settling their financial commitments with us and of adverse costs, before we can provide Litigation Finance.

Every loan is subject to monthly interest charges, a one-off facility fee and may be subject to a monthly monitoring fee. These transparent fees will be fully illustrated the Litigation Finance Proposal and subsequent agreement. The Client must take out the required insurance cover to protect against the identified risks and the premium required will be included within initial draw down. The specific Interest rate charged is agreed on a case by case basis and is accrued monthly on drawn down funds only. The actual payment of interest charges however is not compounded and deferred to the settlement of the agreement. This means that we do not charge interest on interest.
The provision of Litigation Finance is predicated on the Client being retained by only an approved Law Firm. Should the Client decide to change Law Firms, Quanta must approve the new Firm prior to allowing further drawdowns against the facility. If the new Firm is not approved and does not agree to the required undertakings, or the Client decides to Act in Person, the facility effectively becomes repayable which is set-out in the terms of the loan agreement. Interest continues to be charged to the account until settlement.

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