What is litigation financing?
Litigation financing, in this case Trinity, is an arrangement whereby a third party agrees to pay all or part of your legal fees in return for an agreed proportion of the resultant settlement or award of damages, and a cost of capital return on the committed funds or contribution.
What sort of cases are suitable for funding?
The solicitor will discuss the full TRINITY criteria with you, but generally a case will be suitable when it is one with good legal merit and where a monetary outcome is sought from a defendant to either a claim or counter-claim with a clear ability to pay. Personal injury, clinical negligence, defendant and matrimonial matters, amongst others, will not be considered for funding by TRINITY.
Is there a minimum case value TRINITY will consider?
No. The unique way in which TRINITY calculates the economics of a case means that cases of virtually any size can qualify for funding. Provided the claim makes commercial sense for all parties, and meets the TRINITY criteria, it will be funded.
Am I required to make a financial contribution to my lawyer's fees?
In most circumstances the answer is yes. TRINITY also expects your solicitor to undertake a partial conditional fee arrangement (CFA, see below), which means that they defer part of their normal fees. It is important that all parties involved make a financial contribution, and thus have a strong alignment of interests, to ensure that only claims with realistic prospects of success are pursued. There is, however, a mechanism whereby you can protect 90% of your contribution to your case through an enhanced ATE insurance policy – we can provide further details of this through your solicitor if it is of interest.
What is a partial Conditional Fee Agreement (CFA)?
A partial CFA is an agreement that allows a lawyer to defer part of their normal fees pending a successful outcome. In return the lawyer will receive its deferred fees back and a success fee or percentage up-lift on top of their charges in specified circumstances, e.g. if the claim or part of a claim is successful at trial or if an early settlement is reached. If the claim is not successful, neither the deferred element of costs nor the success fee are payable by you.
What is After The Event Insurance?
After The Event (ATE) insurance is an insurance policy taken out after a dispute has arisen to protect a claimant against the risk of having to pay the opponent’s legal costs if the claimant loses (Adverse Costs).
Am I obliged to take out ATE Insurance?
Under the TRINITY Finance solution you are obliged to take out Adverse Cost insurance where there is a risk of an Adverse Costs order. If there is no risk of this, then ATE insurance is not required. The policy, which comes as standard with the TRINITY Finance solution, also allows you to protect 90% of your financial contribution to the case, should you choose to do so, for an additional premium. The premiums for ATE insurance are paid for by TRINITY in the first instance and will be included within TRINITY’s recovery share of costs upon success. The premium is not repayable to TRINITY in the event that the case is unsuccessful.
Who will provide the insurance cover?
The preferred insurer is AmTrust Europe Limited, a leading A-rated UK insurer. Their registered office is at No 2 Minster Court, Mincing Lane, London EC3R 7BB. AmTrust Europe Limited is authorised and regulated by the Financial Conduct Authority and Prudential Regulation Authority.
Am I obliged to take out cover with AmTrust or can I approach another insurer?
You are not obliged to take out the insurance policy with AmTrust. If you would like to arrange your own insurance cover, or ask TRINITY’s insurance broker Universal Legal Protection (ULP) to arrange an alternative insurance policy, you are free to do so. However, TRINITY believes that ULP has been able to utilise significant buying power to obtain a very competitive price with AmTrust that is unlikely to be matched if an individual client seeks the same level of cover with another insurer.
If my case loses do I have any financial liability to Augusta or to my opponent?
The answer to the first part of this question is no. TRINITY provides funding on a non-recourse basis, which means that if your case loses you have no liability to TRINITY, assuming that you have complied with your obligations under the funding agreement.
In relation to your liability to your opponent, all claimants availing themselves of the TRINITY finance solution are required to take out After the Event (ATE) insurance which protects them from the requirement to pay the other side’s costs in the event of a loss, and provided the amount of indemnity under the policy cover, again assuming that you have complied with your obligations in respect of the insurance policy. The amount of indemnity is determined by your lawyer.
Does TRINITY have the right to require me to make or accept a settlement offer?
No. Whether or not to settle is your decision alone. However, TRINITY requires you to act reasonably in considering whether to reject or accept offers and will require you to take advice from your solicitors and / or a barrister on whether settlement is appropriate.
To what extent does TRINITY have a right to control the case after funding?
Where TRINITY provides funding, we require that your solicitors provide us with regular updates on the progress of the litigation; TRINITY does not seek any right to control the litigation beyond monitoring its on-going investment and compliance with the funding agreement.
How long does the application process take?
Once you have agreed the commercial arrangements with your solicitor, who has been approved by TRINITY to provide the TRINITY finance solution, your solicitor will complete and submit a Funding Application together with an agreed budget for your case. The claim will then be considered by the TRINITY review panel and a decision should be made within 10 days of TRINITY receiving the fully completed Funding Application.
Will TRINITY pay for costs I have already incurred?
If the costs incurred are directly related to the case and do not affect the economics, TRINITY will pay these previous costs. Where the costs incurred to date are substantial when compared with the overall costs of the matter, TRINITY may choose to finance only a portion of them.
What happens if the TRINITY funded case is lost?
Provided that you have complied with the insurance policy, and a funded case is lost, then the insurer would pay for any Adverse Costs orders made against you. If you have also chosen to take out insurance for your own costs then the insurer will pay for 90% of your own cost contribution to the case.