Litigation Funding
We use our expertise and creativity to offer innovative solutions to funding the cost of litigation, minimising and in some cases completely removing the risk and upfront cost to you of pursuing your claim.
Good claims are assets. However, the cost of pursuing a claim and the risk of losing and having to pay your opponent’s fees can be off putting. Our team of over 40 lawyers have experience of assessing, running and winning claims where part or all of the costs are only paid if the outcome is successful.
Unlocking your claim.
We were one of the first law firms to utilise litigation funding and have been working with litigation funders since 2010. They trust our judgement in assessing claims suitable for funding, which enables us to secure competitive terms quickly. We advise funders and other professionals on the regulatory aspects of litigation funding and how to structure funding, insurance, contingent fee agreements and claims management agreements.
We also have in-depth knowledge of the after-the-event insurance market, an insurance product that covers the financial risk of losing the claim and having to pay an opponent’s legal costs. Through years of working with insurers we know what they’re looking for and how to secure insurance that covers all eventualities.
Where we believe in your claim we will act under a contingent fee arrangement whereby all or part of our fees are at risk and only payable if your claim is successful.
How Does Litigation Funding Work?
Litigation funding involves a party unconnected to a claim (such as a hedge fund) financing all or part of the costs of pursuing your claim in return for a payment if your claim is successful. The amount to be paid to a litigation funder if the outcome is successful is agreed at the outset and varies depending on the type of claim, the choice of funder and their risk analysis, as well as our assessment of the claim.
A ‘funding package’ will usually consist of:
- A contingent fee arrangement with us, whereby we agree that part of our fees will be at risk and only payable on success in your claim.
- A funding agreement with a third-party financier who agrees to pay all or some of the costs of your claim (i.e. part of our fees, court fees, expert’s fees etc) in return for a payment if your claim is successful.
- An insurance policy or an indemnity to cover the risk of having to pay your opponent’s costs if your claim is unsuccessful.
- Where there are a group of claimants, a claims management agreement setting out how the claim is to be conducted on behalf of all within the group.
We take a flexible approach to finding a funding solution that works for you. Not all claims will have all of the above elements and the terms of each of the arrangements will vary to suit your needs.
New North Litigation Capital
In 2025, Capital Law’s litigators, led by Chris Nott, Andrew Brown and Guto Llewelyn, created New North Litigation Capital to bridge a known funding gap for claimants, litigators and insolvency practitioners throughout England and Wales who have decent commercial claims seeking damages between £500,000 and £30m but are ‘underserved’ by existing funders who tend to focus on much larger claims. New North was built to offer faster and fairer litigation funding for those larger claims too.
From time-to-time clients of Capital Law will also require litigation finance and it would be unfair for Capital Law’s clients to be denied the benefit of New North’s offering or, worse still, be denied access to justice because they were unable to source funding elsewhere. In those situations, Capital Law’s terms of engagement will explain the structure of New North’s litigation fund in more detail. Capital’s client will have to provide their informed consent before New North will be asked to assess their claim for funding.
New North is a wholly owned subsidiary of Capital Law but its funding decisions are subject to independent review. New North is a separate business from the law firm so not regulated by the Solicitors Regulation Authority (albeit Chris Nott, Andrew Brown and Guto Llewelyn retain their practising certificates).
Meet the team
We offer specialist legal advice that is commercially driven and clear.
Hear from Craig Hollingworth
Discover how our team supported and secured litigation funding for Red Squirrel.
Red Squirrel’s CEO, Craig Hollingworth, approached Capital Law to act on its behalf in a claim for unpaid commission, replacing its previously instructed firm of solicitors.
