It may come as a surprise to learn that litigation funding is a viable option to consider when engaging in small claims proceedings.
Understand the Small Claims Limit
Claims under the small claims limit in England and Wales of up to £10,000 are dealt with on the small claims track. While such cases are of low commercial value and are generally not considered to be worthy of litigation funding, there are occasions where they can be considered for funding.
Which Claims Attract Funders
Simple debt cases such as unpaid invoices, contractual disputes and property damage cases that have clear evidence of liability are generally considered to be the most fundable cases. Cases with a strong paper trail and a solvent defendant are also viewed more favourably by funders.
What Funding Can Cover
At the small claims level, UK Litigation Funding will typically cover the court fees and disbursements of your legal team rather than their full fees, as small claims are designed to be heard by the court in the absence of either party’s legal representation.
How to Present Your Case Well
Gather relevant contracts, invoices, correspondence and written admissions. Document your claim and set out a realistic recovery figure in your submission to potential funders.
Consider the Alternatives First
Check if you already have legal expense insurance through business or home insurance policies that cost you nothing extra.
A small claim is worth pursuing properly. Take a moment to consider your options before deciding how to fund your claim.