In an ideal world, the process of applying for litigation funding would be easy and straightforward, allowing claimants to pursue a claim without having to worry about the financial aspect.
Of course, events which involve multiple parties can occasionally run into problems or delays. Let us have a look at some of the most common litigation funding problems and how to avoid them.
Lack of transparency
Some would argue that litigation funding is always something of a trust exercise. No one can predict the outcome of a case, and so, offering litigation funding is always a leap of faith to some degree.
For this reason, a lack of transparency or withholding information by any party can cause problems at some point along the line. Failing to disclose a fact that may make the outcome of the case less certain is a sure-fire way to rile the funding body.
Too much time elapses
As anyone who has ever been involved in a complex litigation case knows, these situations can drag on for quite some time – sometimes years, according to The Association of Litigation Funders. During this time, litigation funders can lose interest or enthusiasm in funding the case, while individuals lose faith in the process. A mutually drawn-up timeframe of events and regular meetings to keep in touch can be a helpful way to mitigate this.
If you need any advice about any aspect of litigation funding, an expert agency such as https://www.novo-modo offers personalised support throughout the process.
Confusion over legal terminology
It is important for litigation funders to remember that the typical claimant does not, in fact, use legal terminology or contractual language in their day-to-day life, and may not fully comprehend all of the terms being used. Remember to keep things simple and in plain English. And if you are the claimant, do ask if you are unsure.
Misunderstandings can cause friction and mistakes. A well-drafted term sheet goes a long way towards creating good understanding on all sides.
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