Investec have become the first UK bank to offer commercial litigation funding to companies pursuing civil claims. The bank has launched the funding package following a number of pilot cases completed this year.
In return for financing some of the cost of bringing a claim, Investec will get a cut of the damages if the plaintiff succeeds. With a minimum level of funding set at £250,000.00 and no limit, there are no pre-defined lending criterions meaning each case is
judged on its own merits.
In the current economic climate Investec has seen an increase in approaches made by law firms looking for new funding arrangements. In a statement released this month Jonathan Harvey, Specialised Lending, Investec Specialist Private Bank said, "The cost of
litigation in the UK can be prohibitive. Many clients have strong cases but in such uncertain times are not prepared to take on the cash flow risk associated with pursuing their case. This can represent a significant opportunity cost in terms of lost revenue
for the law firm and damages for the client".
Following the impact of the Legal Services Act 2007, this move represents another significant step as Investec seek to consolidate their position within the legal community.
To discuss how we can provide further advice in connection with these issues, please contact Damian Carter, Partner in our Litigation team, by email to email@example.com or alternatively you can call Damian on 0161 833 9211.
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