23.12.11

Sponsored blog post: A commercial solicitor now needs to secure funding by Therese Wallin

The straining financial climate is being felt by most sectors, even those which are traditionally prosperous, such as commercial litigation. With companies’ limited financial resources, commercial solicitors may find themselves with fewer clients willing to engage in, what can be expensive and time-consuming, court litigation. Adding to an already difficult climate is the declining availability of Conditional Fee Arrangements. As such, access to justice can be a tricky path for some companies. Looking to gain from the present state of affairs investment firms are increasingly offering third-party funding. This funding alternative will partly alleviate any concerns of commercial lawyers who wish to proceed with cases where funding is lacking.

However, this also means that commercial solicitors will have an extra task on their hands before instructing a barrister on their client’s behalf. It will be necessary to convince investors of the strengths of cases. Moreover, most investors have a minimum threshold on claims’ worth for investment to be secured. Hence, commercial law lawyers may still see a decrease in their number of cases which. The funding gap may be partially filled by third-party investors, how much remains to be seen.

Therese Wallin is Content Editor at Contact Law (Thomson Reuters) and reflects here about some of the current ongoing issues affecting many in the UK. Therese has an LLB in Law and Human Rights and an LLM in Public International Law.

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