FAQ – Frequently Asked Questions
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At what point do you begin covering legal costs?
We begin covering the costs for asserting your legal claim following the conclusion of an agreement on litigation funding. Please understand that your claimant initially will have to cover your costs for preparing the litigation funding inquiry.
Who conducts the case?
Also after an agreement on litigation funding has been concluded, you as the plaintiff’s lawyer will remain in exclusive control of the proceedings. You will keep us informed about the development of the case during the entire course of the proceedings and will coordinate important decisions with us.
Do the claims need to be assigned to you as the litigation funding partner?
The claims will be assigned to us only as a security for the duration of the agreement on litigation funding. However, your claimant, in his capacity to sue and be sued, will continue to assert the claims under his own name as the plaintiff. This arrangement need not be disclosed to the court or to the opponent.
Under what circumstances must decisions regarding the conduct of the case be coordinated with you?
You must consult and coordinate with us before taking actions that will trigger costs or if dispositions are to be made regarding the disputed claim.
Can the claimant be forced to settle?
No. If no agreement can be reached regarding a settlement offered by the debtor, the agreement on litigation funding merely offers a right of termination for the party who wishes to accept the settlement. The remaining party can then pursue the case further alone. However, the remaining party in that event must compensate the terminating party as if the settlement had been accepted. The remaining party may keep the full amount of any further award. In our experience, however, such cases come up very infrequently. In general, the interests of the claimants overrule all others.
Under what circumstances can you terminate the agreement?
We can only terminate the agreement if substantial changes occur during the proceedings that could harm the chances of a successful outcome. In such case, we would of course bear the costs incurred up to that point.
Can litigation funding be disclosed to the opponent?
Generally, the fact that the litigation is being funded is kept secret. However, it may be disclosed for tactical reasons after consulting with us. We will coordinate this with you.
Do you rule out any particular areas of law from litigation funding?
No. Generally speaking, claims from all areas of the law can be considered.
Is it possible to arrange financing for a case even after a complaint has been submitted?
Yes. We also take on the costs of cases that are already in process. You can inquire about litigation funding at practically any point. However, it is advisable to do this early so that the best possible approach can be coordinated.
Can cases involving an international component be financed?
We will fund cases in Germany with foreign plaintiffs at any time. We will also assist with the enforcement of claims in Austria, Switzerland, and England.
Is the litigation funding partner’s share of the award negotiable?
Typically, our interest in the civil-law partnership is between 20 and 30 percent for claims in Germany. If the claimant agrees to a deductible or indemnifies us against the risk of having to pay the opponent’s legal fees in the case of a loss, our share may be reduced. If the risk of a suit is higher than usual, however, we may ask for a higher share in some instances. For very large claims, we regularly negotiate our share on an individual basis.
Do you require the engagement of specific lawyers?
What types of cases do you take on?
Subject to a comprehensive evaluation, we finance cases meeting the following pre-requisites: the amount in controversy is at least 100,000 Euros, the prospects of a successful outcome are good, and the debtor is sufficiently creditworthy. Cases from all areas of the law are suitable for litigation funding as long as they concern a performance that is divisible in economic terms.
What information do you require for the advance evaluation of a case?
We need you to provide us with substantive documentation that makes the facts of the case clear, covers the objections of the opponent, sets out the relevant evidence, and allows for a legal evaluation. A statement of case is not necessary for us to begin our evaluation but will make the evaluation much easier. However, a complaint must be submitted before the agreement on litigation funding can be signed.
Does the claimant need to enter into a contractually binding agreement in order for you to begin your evaluation?
We do not require an advance contractual agreement. However, for reasons of fairness we would kindly ask that you inform us if you have made inquiries with other litigation funding partners. In some cases, we may request a brief commitment period (typically not more than three weeks), especially while we are obtaining external expert opinions at our own cost.
How long does it take to evaluate a case before accepting it?
The time we need for our evaluation depends primarily on the complexity of the case. The sooner we receive the requested documents and the answers to our questions, the sooner and more quickly we can evaluate the case. An initial indication of whether the case is fundamentally suitable for us can be made after approximately two days.
Can my claimant make the inquiry about litigation funding on his own?
Ideally, financing inquiries should be made through a lawyer. Your prior preparation of the case materials will allow us to evaluate the inquiry more quickly. Our lawyers are happy to discuss legal issues with you.
How much does it cost to have a case evaluated for litigation funding?
We will always evaluate inquiries for your claimants at no cost.