CrippSolutions
CrippSolutions is a flexible and innovative approach to litigation funding offered by leading solicitors Cripps Harries Hall LLP. For more on Cripps Harries Hall LLP please visit our website.
We recognise that disputes and particularly formal litigation are often both an unwanted and unexpected expense and that that expense is of particular concern to clients and potential clients. The expense is unlikely to be budgeted for and the potential costs both of pursuing or defending a case and to costs if you lose can influence the decision whether to pursue or defend a claim. Research indicates that fees and budgeting are ranked as important or extremely important criteria in 82% of cases by clients allocating work to law firms and that figure rises to 88% for ‘low stakes’ matters.
The courts are concerned with the mounting costs of litigation and rightly so. To address this there has been a considerable relaxation of what is permitted in litigation funding. By combining the various options now available you can substantially reduce the amount you have to pay both as the case progresses and in the unhappy event that you lose.
At Cripps Harries Hall we recognise that clients take significant risks in litigation often in reliance upon our assessment of the risks. With these factors very much in mind we are able to offer a variety of billing methods that share the risk and, necessarily, the reward, with you. This flexible approach is an extension of our values and philosophy of client relations – that we should work with our clients as a team sharing together and utilising the best members of the client-lawyer team to undertake those functions they are best able to undertake. This enables you to stay in control and manage the process with us.
We commit to:
- discuss with our clients an alternative form of billing to the hourly rate in every case where there are proceedings and to offer some form of ABM that we consider meets your objectives and reflects the risks and potential rewards, and
- to give as much certainty as possible of the costs of litigation and we commit to giving a total budget and timescale.
Our offer is driven by the client’s answer to the question “What is it that most concerns you about the cost of litigation?” and our assessment of the case.
Nevertheless, we are ourselves a business and only in exceptional cases do we consider a “no win / no fee” i.e. where you pay nothing if you lose. We would not normally take on cases that we think we will lose but losing is not necessarily our fault – by the very nature of a dispute two or more people take opposing views and a decision is taken by an independent judge or arbitrator. We cannot and do not guarantee success as there are usually contested facts and often differing views of experts.
We will normally be willing to offer some discount on our normal rates in return for an uplift if we win and may be able to offer fixed, capped, capped and collared, blended or differential rates / fees for specific steps in, or in some cases, the entire, litigation.
| The discount operates to reduce the hourly rate that we would normally charge by between 10% and, exceptionally, 100% but normally will be in the range 15% - 35%. If you win then you pay an additional amount to revert to the undiscounted rate and, in addition, pay a ‘success fee’ which is an additional percentage calculated on the undiscounted rates. | Example: the normal hourly rate for the fee earner dealing with your case is £250. We offer a 20% discount as the case progresses, so you pay £200 ph. That is all you pay if you lose the case. The success fee is 50%. If you win you pay £250 ph + 50% i.e. £375 for every hour worked. |
We may be able to offer fixed monthly payments towards the total costs.
Although we are a business, we are not a bank. We do not see it as part of our role to fund disbursements or other expenses. That is a matter for you the client although there are a growing group of litigation funders who will fund litigation and especially disbursements and other expenses but potentially also the costs payable to us for our time spent. They do so in return for a multiple of the investment or a percentage of the recovery. We are happy to introduce clients to these funders and to work with them as part of the team.
We also have strong links with insurers who may be able to offer to insure the risk of having to pay the opponent’s costs (and potentially your own disbursements as well) and even on a self-insured premium basis.
The costs of insurance and the costs paid to us (including the success fee) – but not the amounts due to litigation funders – are recoverable as costs of your claim or defence. Costs are recoverable provided they are proportionate to the matters in issue. In principle, the success fee and costs of insurance are proportionate but whether they are recoverable on the facts of any particular case depends on those facts.
There is considerable tactical benefit in telling your opponent that you are using one or more of these options – and you are obliged to tell then about conditional or concessionary (or discounted) fees and any insurance. It sends a clear message that your lawyers, insurers and, potentially, funders are each satisfied on the merit of your position.
We call this highly innovative approach “CrippSolutions” – we are convinced that we can offer a viable solution to your problem of litigation funding.
For further information please contact Peter Ashford on +44 (0)1892 506113 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
