Why funding is even a question
The Ombudsman and FSCS are free, but they cannot reach every case. Where the loss exceeds what the Ombudsman can award, where the defendant is outside its jurisdiction, or where the claim has to be brought against a party it cannot deal with, a court claim is the route — and court claims cost money that may not be recovered if you lose.
The three moving parts
A funded claim usually combines a fee arrangement with the solicitor, insurance against the risk of an adverse costs order, and sometimes capital from a third-party funder. Each has its own terms, and each can change how much of any recovery reaches you.
- A conditional fee agreement — commonly “no win, no fee”, where a success fee is charged if the claim succeeds
- After-the-event insurance — cover against the risk of paying the other side’s costs if the claim fails
- Third-party funding — an external funder pays the costs in exchange for an agreed share of any recovery
- Disbursements — court fees, expert fees and counsel’s fees, which are separate from the solicitor’s own charges
The questions to ask in writing
A funding conversation is a negotiation. Get the answers in writing, and keep them with the rest of the file.
- What exactly is deducted from a successful recovery, and in what order?
- What do I pay if the claim fails, including disbursements and any insurance premium?
- Who pays the other side’s costs if I lose, and does the insurance cover all of it?
- Who controls settlement decisions, and can I refuse a settlement?
- What happens if the funder withdraws, or if the claim is discontinued?
- Are there any fees payable during the claim, or is everything deferred?
- What is the estimated timetable, and what are the key milestone dates?
Where funding and limitation interact
Limitation is not paused by funding conversations. For a negligence claim the period is six years from the cause of action or three years from the date of knowledge, whichever is later, with an overriding fifteen-year longstop from the act or omission. If limitation is close, get advice on protecting the position before negotiating terms — a claim that is out of time cannot be funded back into existence.
What we do not do
This site does not run claims, does not fund them, and does not take a share of anything. We do not recommend a particular funder or solicitor, and nothing here is an invitation to litigate. If you are considering a funded claim, take independent advice from a solicitor who will be acting for you.