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Another firm sets up no win, no fee scheme for commercial claims
Legal firm Anderson Strathern has announced the launch of a funding business to enable commercial litigation to be brought on a no win, no fee basis.
Chairman Bruce Farquhar and solicitor advocate Alistair Dean have set up Alba Claims, to help clients deterred by the costs involved in pursuing a claim.
The business will take on claims that it believes have good prospects, taking a success success fee in the event of recovery. Mr Farquhar said the focus would be on commercial matters such as construction, insolvency and intellectual property.
Mr Dean commented: “It’s often the case that claims are not pursued either because businesses are not in a financial position to fund the claim or consider that their finances can get a better return elsewhere. We want Alba Claims to help level the playing field and reduce the uncertainties of dispute resolution, while removing the requirement to pay legal fees on an ongoing basis.”
The move comes two months after Shepherd & Wedderburn secured a portfolio-based litigation finance arrangement from Burford Capital, a global finance firm focused on law. The deal enables the firm to offer alternative fee arrangements to clients involved in commercial litigation and arbitration, and reflects arrangements that the firm said have proved increasingly attractive to US law firms, including those practising in the UK. "They enable law firms to manage cash flow better, reduce risk exposure and provide a competitive advantage in attracting new business."
Capital is provided on a non-recourse basis, with Burford receiving a portion of the proceeds from successful cases.