Leading law firm Stephensons Solicitors LLP is launching an innovative funding method to businesses caught up in legal disputes, having formed an alliance with Augusta Securities Ltd (Augusta), a specialist litigation funder.
The commercial law firm, which has offices in Middlebrook, Bolton and Hammersmith, West London, will now be able to offer commercial clients the option to fund their legal fees via Augusta. The collaboration between the two businesses has been borne out of a demand from clients who are discouraged from pursuing legal action due to the cost.
Jonathan Chadwick, managing partner of the commercial law department at Stephensons, said: “Businesses facing litigation have to treat cases as any other investment. Litigation has cash flow implications for the company and we understand when business owners express concern regarding the cost of financing their case. Pursuing a dispute can be unsettling and the need to have some control and reassurance around the cost is a key concern.
“The alliance with Augusta allows us to offer a new funding method to our clients and should make pursuing a commercial litigation case more accessible for businesses.”
Augusta will provide a financing solution which gives financial support to the business bringing the claim. If the claim is suitable for this funding method, Augusta will agree to pay part (or in some cases all) of a claimant's legal fees, in return for an agreed proportion of the settlement or award of damages. Clients using this finance option will also qualify for After the Event insurance, which means that the risks associated with unsuccessful litigation are significantly reduced.
Robert Hanna, a partner at Augusta Ventures LLP, said: “Stephensons, as a preferred Augusta partner, has access to a dedicated pool of funds that can be used to provide clients with the Augusta financing solution. This financing option delivers a number of benefits including a reduction in financial risk, maximum case proceeds go to the claimant and it can be applied to small and large-scale legal actions.”
Stephensons will assess cases for their suitability to this funding method based on various criteria including the prospects of success.