Augusta includes both Augusta Ventures Limited (the Consultant) and Augusta Securities Limited.
Augusta is the largest litigation financier in the UK by volume of claims financed, our team consists of experienced lawyers, financiers and insurance practitioners.
We are members of the Association of Litigation Funders (ALF), regulated by the UK’s Financial Conduct Authority (FCA), regulated by the Jersey Financial Services Commission (JFSC), and we are UK Consumer Credit Act (CCA) Licensed.
We finance commercial claims which are seeking a monetary outcome or an easily-liquidated asset (such as shares or real property) from a defendant who has the ability to pay.
The case must be ‘economically viable’ for funding. This means that it must have a minimum 1 to 4 costs to award ratio. In other words, the total budget to run the case must be no more than ¼ of the claim value. This is to ensure that the claimant will receive a worthwhile sum from the damages after Augusta’s reimbursement and success free are paid.
Claims types we finance include, but are not limited to:
- Breach of Contract
- Shareholder Disputes
- Intellectual Property
- Contentious Trust & Probate
- Professional Negligence
- Arbitration (domestic, international and Bilateral Investment Treaty)
For more information on which cases suit financing click here
At this time, we do not consider matrimonial matters, family law, personal injury or clinical negligence matters.
In most instances the value of the claim will need to be £200,000 or more for Augusta’s involvement to be economic for the client. For a claim to be economic, there must also be a 1:4 ratio of costs to damages, meaning the full budget to run the claim to a fully-contested trial should not be more than ¼ of the total claim value.
We are market innovators and view disputes as assets. Our objective is to allow claimants to leverage the value of that dispute to their maximum benefit. We have previously provided a number of bespoke solutions for clients with specific needs, so if you are looking for an alternative solution for yourself or your client please contact us to discuss in more detail.
For examples of the types of costs we fund click here.
There is a 3 stage process which involves an initial review of the case economics and recovery, and followed by a formal review of the merits and economics of each matter. For full details of the process see our page on accessing our capital here.
- Non-recourse financing for your clients
- Risk Sharing: offer clients deferred fees without entering into a full CFA or DBA.
- Improve client relationships (eliminates the need to chase invoices)
- Business development & pitch support
- Referral Opportunities
- Marketing: approved firms can advertise their funding facility
Augusta has worked with hundreds of different law firms in the UK, and can work with almost any reputable, established firm. As part of our diligence process and before we finance a claim we undertake some light touch due diligence on the law firm.
If you are interested in partnering with us, please contact us.
Augusta does not require claimants to contribute towards their legal costs, however we encourage contribution in some cases, as it may mean the client will get to keep a much more significant portion of the claim proceeds.
Before we consider a dispute for financing, we require the merits to first be assessed by a solicitor and possibly counsel. This means that some fees will necessarily be incurred prior to the completion of the finance agreement. There are several ways these fees can be met—the client can privately pay, the law firm can opt to defer these fees, or the firm can apply for our ‘pre- application’ financing to help with the initial costs of assessing the claim.
Augusta will designate a lawyer from our Monitoring Team to keep in touch with the legal team and monitor the investment. Experienced litigation solicitors, they can also be a valuable resource for the client and legal team during the course of the dispute.
The legal team will be asked to complete a brief, monthly online questionnaire, provide Augusta with copies of the key correspondence and documents, and keep us updated on the progress of the claim. We’ll also require copies of all the invoices so we can track the budget.
After the Event (“ATE”) insurance is an arrangement where an insurance company provides a client (typically a claimant) with cover for legal costs. The policy will typically insure the claimant against the risk of having to pay their opponent’s legal costs in the event their claim is unsuccessful, but may also be used to cover a portion of the claimant’s own legal fees.
Augusta is a funder rather than an ATE provider, however we are prime-placed to help litigants find competitively-priced ATE insurance to cover their risk
Augusta is regulated by the FCA for insurance mediation and we have excellent relationships with brokers and insurers. We can offer preferential rates through our A-rated ATE scheme, where the premium is a flat 15% of the sum insured (plus Insurance Premium Tax) and the premium is fiananced by Augusta, or help the claimant to find a competitive price on a policy where the premium is deferred and contingent upon success.
As the UK is a loser pays system, it is advantageous for both the claimant and Augusta for the claimant to have an ATE policy which covers adverse cost risk. Augusta will require any claimant who may potentially face an adverse costs award to have adequate ATE insurance cover in place. If the claim is one where there is no risk of an adverse costs order, the claimant may opt not to have ATE. Augusta can help arrange ATE and fund the cost of the premium.
The legal team will work with Augusta to set a budget for a claim at the outset, and while we encourage claimants and legal teams to do their best to work to the budget, we recognise that this is not always possible. Where a variation is required we must be advised and the variation and increase in funding will be approved if feasible.
Augusta does not have control over the case, and Augusta does not have the right to make the claimant accept or decline a settlement offer. The claimant will retain ultimate control of their dispute.
Augusta will require claimants to act reasonably in considering whether to reject or accept offers. As such, we do require the claimant to take advice from their solicitors and/or a barrister on whether a settlement is reasonable. In addition to this, where the claimant has ATE insurance in place, the insurer will need to give their approval before an offer is rejected, or where a settlement would result in a shortfall of the premium due.
In the event that the claim is unsuccessful and the claimant has complied with the insurance policy, then the insurer would pay for any adverse costs orders that may result from the loss, up to the amount of the limit of indemnity.
Provided the claimant has complied with the financing agreement, they will not be liable to repay the funds that Augusta has advanced to cover the costs of the matter, though any of Augusta’s funds remaining in the law firm’s client account must be returned to Augusta.
In relation to Augusta, no – we provide our funding on a non-recourse basis, which means that if the case loses and the claimant has complied with their obligations under the financing agreement then they do not have to repay the financed amount.
If the client has adequate ATE insurance cover in place, and has complied with the terms of their policy (a requirement for most cases Augusta funds) they should not be liable to pay their opponent’s costs.
Where a financed claim is settled or wins at trial, the proceeds of the claim will be distributed in the priority order set out in the finance agreement.
In general, Augusta is first resimbursed and paid our success fee, any other liabilities the client may have will be paid, and then the claimant will keep the remainder.
Our success fee is set on a case by case basis, taking the individual risks and merits of each claim into account. Our success fee is calculated as the greater of either a multiple of the funds released (starting at a 1.2 x multiple), or a percentage of the damages and costs recovered (starting at 10%).