The Ligitgation Funding Problem
Litigants are typically required to pay solicitor’s costs and disbursements (such as barrister’s fees, court fees and expert witness fees) as a claim progresses, diverting significant resources away from the day-to-day management of a business, or an individual’s personal resources.
The rules regarding inter parties costs recovery in civil proceedings in England and Wales are complex, but the general rule is that “costs follow the event”. In other words, the loser pays the winner’s legal costs. This means that, in addition to having to pay their own costs of the litigation, litigants face the risk of having to pay a proportion of the other side’s costs (also known as adverse costs)) if their case is unsuccessful.