nexafunding
Flexible Funding for Professional Negligence Claims
When you approach a lawyer to advise you on a claim against a professional, you really want to know only two things:
- Am I going to win?
- How much is it going to cost?
When some lawyers hear these questions, their first thought is always “it depends.” But as a client, this isn’t usually the answer you’re looking for. Luckily, it doesn’t have to be this way – at nexa law, we take an alternative approach.
An affordable approach to professional negligence claims
We can’t change the fact that the outcome and cost of a professional negligence claim is inherently uncertain. We can, however, agree with you what you’re willing or able to pay and seek a bespoke funding solution based on your specific needs.Our nexafunding solution gives you complete control over how much of your own money you need to risk in order to pursue a claim.
Understanding the costs involved
In any dispute there are three sets of costs to think about:
- Your own legal costs
- The expenses of the case (commonly called disbursements)
- Your opponent’s legal costs – payable by you if you lose
Our nexafunding service enables you to set your maximum exposure to each of these costs at the outset of your professional negligence case. The more risk you’re prepared to take, the greater the upside if your case is successful – and vice versa.
Managing your risk
We always recommend protecting yourself against your opponent’s costs in the event your case is lost, and through nexafunding you can access insurance to cover this risk (usually called After the Event Insurance or ATE).
You can decide whether to:
- Take all the financial risk and keep all the rewards.
- Set a limit to your financial risk and keep a proportion of the rewards.
- Take zero financial risk in return for lower rewards
Can I self fund my claim?
You can still work with Nexa even if you don’t want a funding solution in place. The more of the case you fund yourself, the less of the rewards you will have to share with a funder. However, as the cost of many professional negligence claims can easily reach six figures, nexafunding presents an opportunity for you to set a limit on the amount of your own money you’re prepared to spend.
Nexafunding won’t be suitable for all professional negligence cases. But for those where six figure compensation is at stake and the chances of success are high, nexafunding is certainly one option worth exploring.
How does nexafunding work?
Take a look at our illustrative example to understand more how nexafunding can bring certainly to your legal costs and risk in professional negligence claims.
Outcome without nexafunding
By paying as you go, you take the risk for both your own legal costs (£95,000) and your opponent’s costs (another £95,000 should the case be lost).You therefore risk £190,000 to potentially recover £300,000.
Outcome with nexafunding
By using our nexafunding solution, you can cap your risk at, say, £20,000. If your case is successful, you recover £225,000 (rather than £300,000) as the difference reflects the cost of funding and ATE insurance.However, if your case is lost you have risked only £20,000 (instead of the £190,000 risked without nexafunding).
Terms and conditions apply. The facts of your case and your personal circumstances will determine the availability of particular funding options and we are not able to guarantee that your case will be accepted by any of the funders or underwriters to whom we will present your case. Furthermore, there may be instances where your case is eligible for funding but on terms different to those which you requested.
