In a decision that could have implications for litigation funders’ reserves, reported in the Law Society Gazette, the Court has found that litigation funders’ liability for costs is not restricted to the amount of their advance and is open ended. It was argued that commercial litigation funders would be discouraged from providing finance in the future if they were held to open-ended costs, but the judge ruled that funders being forced to keep a closer watch on costs was not contrary to access to justice. The judge also said that funders could get ATE cover.
I would suggest that funders may be wise to mediate before costs become disproportionate.
#litigationfunding #mediate #mediator