Unlocking a Commercial Dispute Resolution Case

Unlocking a Commercial Dispute Resolution Case
Andy Lyalle

Covid 19 and the economic ramifications have led to a predictable increase in commercial legal disputes.  There is however a paradox, the same factors mean that potential clients are reluctant to commit their money to a legal action or take the financial risk of “it all going wrong”.  We at Temple Legal Protection ( TLP ) have been working with solicitors to provide a range of solutions that enable their clients to begin a meritorious case and continue when the case is in progress.    

It may be a corporate or high net worth client who is happy for you to bill them as you go along and will also underwrite the opponents adverse costs.  They may still be interested to hear about the potential to hedge their bets and take the risk off of their balance sheets.  Temple will look to tailor an After The Event Insurance premium.  They will have certainty and know that any premium will only be payable if the case is successful and then only at case completion.    

At the other end of the scale you may have a client with a disputed will, professional negligence case or defamation action who cannot consider taking an action if that involves paying your costs, funding disbursements or underwriting the defendants adverse costs.  They will need to be a “silver bullet” client and this comes at a price.  It also enables them to level the playing field and access justice.  The solicitor may decide to act on a full or partial conditional fee agreement or in larger cases seek out litigation funding and disbursement funding.  An ATE insurance policy can also be obtained in case the action is unsuccessful.

As with most things in life a “horses for courses” approach is preferable to a “one size fits all” approach.  The solicitor may be nervous of a “silver bullet” client who has no stake in the case but will also be keen to tailor a solution for a client.  The case may not be suitable for litigation funding but the client may be ready to pay for your fees as they are engaging your services.  They have a stake in the action and a commitment.  However, the answer that you give to “what if it all goes wrong” may frighten a client off, including bigger clients with bigger resources who do not want further uncertainty for them or their business.  After The Event Insurance can be sought out and a quick call or email to TLP with a case synopsis will enable us to let you know if this is a case that we would prima facie consider offering terms on and also to give you an indicative premium price.  You can then return to your client and they can let you know if they would rather assume the risk themselves or would like you to send us a full proposal form.

Finally, the client, big or small can then consider our disbursement funding which is all under one roof at Temple.  The interest rate is very competitive but the client may say that it is cheaper to fund these disbursements themselves or go to the bank for a cheaper deal.  Understandable, but when they are told that the funding is only payable if the case is successful and then only at the end of the case they may decide that they can utilise that capital elsewhere.  A bank will never wait until case completion or to see if the case is successful before asking for repayment.

In conclusion, at TLP we take a bespoke approach to adequately service clients requirements and Solicitors are also arming themselves with the tools to provide this approach for their clients.  We are very happy to receive bespoke enquiries, conducted under any type of retainer but as we are working in partnership together we are happy to consider “giving you the pen” and providing a delegated scheme.

Hopefully, the talk of impending surges of litigation in certain legal sectors and services will not dampen the festive spirit but we can at least look to provide as much assistance for our clients as possible and in a way that best meets their needs and requirements in 2021.   

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