Pictured above: Mark Aldrich
Browne Jacobson has launched a new litigation funding solution
amid growing concerns that the rising cost of litigation is
stifling access to justice.
Risk Share from Browne Jacobson, which has been developed with
two of the country's leading insurance brokers, is aimed at
reducing the financial exposure of some of its clients who are
embroiled in a legal dispute.
Clients will be offered the option of entering into a discounted
conditional fee arrangement where the merits of the claim are
favourable.
In addition Browne Jacobson will, where possible, arrange after
the event insurance through preferred brokers to provide clients
with cover for any potential liability for the defendant's costs in
the event they lose a case.
The initiative follows growing concerns amongst business
leaders, politicians and the judiciary that litigation costs are
spiralling out of control.
According to an IPSOS Mori survey 76% of companies surveyed
ranked the rising cost of litigation as their primary concern in a
commercial dispute. In particular companies feel that they lose
control over the total cost spend on a piece of litigation,
particularly where a case is lost. With Risk Share the client
shares the risk of litigation with Browne Jacobson. Even if the
client loses the litigation, the client will pay substantially
reduced fees to Browne Jacobson and will have the peace of mind
that is provided by the provision of after the event Insurance
against the defendant's fees.
In January this year Lord Justice Jackson's review reinforced
concerns about the cost of litigation and the Culture Media and
Sport Committee's more recent report, Press Standards, Privacy and
Libel, highlighted concerns about the number of defendants who were
sacrificing justice on the grounds of cost.
Mark Aldrich, Partner in the Dispute Resolution Team at Browne
Jacobson, said: "Despite having a strong case many claimants
feel overwhelming pressure to reach a settlement simply because of
the fear of losing and the cost implications that may follow.
"We want to remove some of the barriers that may be standing in
their way by sharing some of the financial risks associated with
litigation.
"Risk Share has been developed in direct response to our
client's needs and concerns and we believe the combination of a
conditional fee agreement with after the event insurance is a
powerful solution that will give many of our clients the peace of
mind they need to pursue the justice they are entitled to."