With money tighter than ever, businesses across the UK are now able to benefit from a ‘lifeline’ legal funding option.
Businesses around the world are continuing to grapple with the effects of the global pandemic and the resulting economic shock. The added pressure of litigation disputes, the issue of lack of resources to secure competent and expert representation is not one business managers should have to deal with.
For businesses in the UK, profits have dramatically plummeted and this could cause a spike in commercial legal disputes. Considering this, Hallmark Solicitors, a commercial law firm based in Yorkshire have added Damage Based Agreements (DBA) to their roster of funding methods to help businesses through these unusual times.
Uche Akali, Managing Director of Hallmark Solicitors is of the view that by adding a Damages Based Agreement to its toolkit, companies who would otherwise not be able to stand up to bigger and well-funded opponents, to the detriment of their long-term future, now have a fighting chance of being able to weather the down-turn brought about by COVID-19.
Under this arrangement, Hallmark Solicitors, which is based in Hull and has offices in Leeds and London, will in effect take on half the risk of a litigation case. As a result, payment is required only on the success of a case. This puts an emphasis on the quality and effectiveness of representation a firm is able to provide.
Matthew Amey, expert legal funding speaker and director of TheJudge, suggests how vital legal funding options could be in the months to come.
“Cash-starved businesses will need a clear and workable regime for Damage Based Agreements more than ever before.”
“Damage Based Agreements, litigation insurance and third party funding, whether separately or in combination, act as equalisers for SMEs in their pursuit of their claims.”
Matthew states the future of DBAs “could be bright,” especially if the “Ministry of Justice decide to adopt the recommended changes to the DBA regulations put forward by Professor Rachel Mulheron and Nicholas Bacon QC.”
Uche Akali concludes:
“Although Damaged Based agreements have been in existence since the Damage Based Agreements Regulations 2013, law firms have been slow to take this up. However, as the COVID-19 Pandemic continues in the UK, I believe DBA’s could become a lifeline to those businesses who need it most in the current crisis.”
Damage Based Agreements have been used as a funding method in the US for many years and the UK is slowly starting to adopt this legal funding method. This will be helped by the potential reforms in the months and years to come.
Hallmark Solicitors is a commercial law firm based in the heart of the business quarter in Hull, with consulting offices in London and Leeds. The firm, which was founded in 2009, specialises in Corporate Legal Services, Commercial Litigation and Dispute Resolution. Hallmark Solicitors pride themselves on offering clients an unrivalled standard of service based on careful and accurate research of issues which then enables the solicitors to offer pragmatic and focused pro-active advice reflecting the reality of the situation.