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If an organisation is unable to fund its legal costs they may have to rely on a third party for litigation funding. Of course this means in the event that the case is won, the third party is entitled to their previously agreed payment. This can be of significant risk to the third party investor and is something that should be investigated thoroughly and handled wisely because if the outcome of the case is negative, all investment can be lost. If the case is successful however, the third party can take an agreed percentage, a multiple of the agreed investment or some combination of the two. However, this fee can not be recouped from the costs award, so it will be payable on behalf of the client from their damages or other proceeds. Because of this, the client should investigate all means of funding before using a 3rd party. While negotiating all third party funding it is also important to be mindful of the probability that you will be successful and that you present yourself as a credit worthy defendant. One of the main questions a client can have is whether 3rd party funding invalidates legal protection insurance such as After The Event. The fact is that many clients will be able to work 3rd party litigation funding alongside ATE insurance to really maximise their legal presence. In fact, in securing your third party funding, they may have already stipulated rules for the use of ATE. In this case it is imperative a client is wary of exactly by which terms they agree to third party funding, since they may ask that they receive the ATE instead of the client - monies which, if payable, should go to you. It is important to remember that there should not be a prior cost to insurance. The Article is written by www.thejudge.co.uk providing Legal Expenses Insurance and Legal Protection Insurance. Visit http://www.thejudge.co.uk for more information on www.thejudge.co.uk Products and Services___________________________Copyright information This article is free for reproduction but must be reproduced in its entirety, including live links and this copyright statement must be included. Visit www.thejudge.co.uk for more services!
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After The Event Insurance, Ate Insurance, Legal Expenses Insurance, Legal Protection Insurance, Litigation Funding,
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