28th March 2019
Augusta’s Infrastructure, Energy and Construction Practice Investment Managers contributed to The Construction News publication this month.
Chris Paterson and Andrew O’Connor discussed ‘How dispute funding can mitigate the risks of legal claims’ and what the benefits are of third-party finance to cover the cost of litigation, arbitration and adjudications.
How ‘dispute funding’ can mitigate the risks of legal claims
At some point, even the least litigious of companies will find itself in a legal dispute. In the construction sector, where cashflow is tight and margins are low, paying to conduct a claim is risky and can have a significant impact on the financial position of a business.
A potential solution may be found in the form of ‘dispute funding’, where a third party provides finance to cover the cost of litigation, arbitration and adjudication in return for a share of the damages if the claim is successful.
Funding is available for all or part of the cost of the claim, including legal fees, claims-management fees, barrister fees, expert-witness fees and other costs.
Critically, third-party funding is ‘non-recourse’, meaning that a funder “Our scale means that we are able to move quickly and invest in cases of any size”