The Litigation Fund
CCF will use raised money to facilitate the funding of litigation matters for those clients who do not have the means to fund a claim. The litigation funding is offered by way of two products:
Litigation disbursement funding.
This funding arrangement is built on an agreement between CCF and a law practice, where the law practice will organise engagement of third party professionals for the purposes of providing advices, reports, or material to assist in a claim.
CCF pays the relevant third party invoice and then charges the law practice the cost of the invoice plus an agreed fee expressed as a percentage of the invoice. At the date of this document that fee is 30%.
If the claim is unsuccessful the cost liability to the law practice is waived. CCF’s costs and expenditure is only repayable upon a successful outcome or the client ceasing to engage that law practice.
This funding arrangement is similar to the disbursement funding but that CCF agrees to fund every dollar incurred, including solicitor professional fees.
Matters that are funded under this agreement are reviewed by CCF’s internal management team and external lawyers. CCF will only fund matters with a high probability of success, following receipt of advice from its lawyers.
If a claim is unsuccessful all costs are waived by CCF and CCF bears that loss. Alternatively, a successful claim will entitle CCF to a portion of the claim proceeds. At the date of this document, that portion is an amount equal to 30% of the claim proceeds.
The Fund is a type of investment vehicle that pools together money from multiple investors and uses that money to invest in litigation claims.
The Fund is open-ended, which means that it can issue and redeem units (shares) at any time. The Fund is unregistered, which means that it is not regulated by the securities regulatory authorities in the same way as a registered fund. Instead, it is intended for wholesale or sophisticated investors, who are assumed to have a higher level of financial knowledge and experience and can therefore better understand and manage the risks associated with an unregistered fund.
The Fund is a growing litigation funder in Australia. In our short time, we have developed a commercial partnership with multiple law firms to review and source potential claims.
The Fund currently provides approval in the following areas:
- commercial/corporate disputes including litigation arising from disputes relating to contracts, intellectual property and allegations of misleading and deceptive conduct;
- claims by insolvency practitioners including claims pursuing voidable transactions (uncommercial transactions/related party transactions), insolvent trading and actions arising from misfeasance by company officers;
- representative proceedings (commonly known as class actions) litigation including securities class actions and class actions arising from cartel behaviour, financial services and product liability;
- domestic and international arbitrations; and
- patent infringement claims.
In addition to the above, we also provided the following services within Australia:
funding for litigation/arbitration and investigations preliminary to litigation/arbitration;
- payment of adverse costs orders;
- strategic planning, monitoring and managing of litigation/arbitration;
- factual investigation preliminary to litigation; and
- assistance in facilitating settlements and maximising the value of each claim.
The Fund does not provide legal advice of any sort.
The funding process begins when a law practice submits the details of a specific litigation to the Investment and Facility Manager for review. If the litigation passes the Investment and Facility Manager’s internal assessment, the claim details will be forwarded to an external specialist barrister to assess it based on its merits. Depending on the barrister’s advice regarding the success rate of the claim, the Fund may agree to fund the claim.
- As part of the funding arrangement, the law practice will be responsible for engaging third-party professionals, such as experts or barristers, to provide advice, reports, or other materials to support the claim. The Fund will agree to fund all of these costs, including the solicitors own fees. The goal of the Litigation Fund is to help cover the costs of litigation and reduce the financial burden for the law practice and the individual or entity bringing the action.
Some of the costs that the Fund will pay, as a legal disbursement are:
Filing fees for subpoenas
- Conduct money
- Agent fees
- Legal notices
- Medical reports
- Psychologist/psychiatrist reports
- Witnesses’ expenses (expert and lay)
- Photocopying and post to an approved amount
- Local Court – Solicitor and barrister fees
- District Court (Appeals from Local Court & Children’s Court) – Solicitor and barrister fees
- District Court – Solicitor and barrister fees
- Supreme Court – Solicitor and barrister fees
- High Court – Solicitor and barrister fees
- Specialist Barrister panel (Complex Criminal Matters) – Counsel Fees
- Travel Entitlements
- Care and Protection – Practitioner Fees
Security for costs
If the litigation is successful, the Litigation Fund will receive a portion of the proceeds as payment for its investment. If the claim is unsuccessful, the claim will be at a loss and the Fund may be liable for charges incurred by the opposing party.