Analysis 2 min read
Litigation as an asset.
A claim the company wins in court brings in money. Litigation funding lets it go to trial without advancing its lawyer’s fees, and without owing its funder anything if it loses.
Hello Justice, editorial team Updated
What a lawsuit costs.
A high‑stakes dispute costs from €30,000 to more than €300,000 in fees and costs, over two to four years of proceedings, sometimes longer Source [1]. The company pays these sums during the proceedings. It only recovers money at the end, if the judgment goes its way and the other side pays.
Many companies then give up their claim, or settle at a loss to stop the spending.
What funding does.
Hello Justice pays the company’s lawyer’s fees, as set in an agreement signed by the company, its lawyer and Hello Justice. The company keeps ownership of its claim. Its lawyer runs the proceedings, and the company decides with the lawyer on any settlement.
In the event of success, Hello Justice takes a commission of 14 to 30% including VAT on the sums recovered, depending on the type of case. The rate is written into the agreement before any commitment. If the case fails, the company repays nothing to Hello Justice.
What changes in the accounts.
Funding creates no debt. The company does not advance the fees Hello Justice pays, and only pays a commission on sums actually recovered. The cash it would have spent on its lawyer’s fees remains available for its business.
The accounting treatment of the dispute, the claim and the commission depends on the company’s accounting framework. It is decided with its chartered accountant and, where relevant, its statutory auditors.
What happens next.
Step 1
The company takes the eligibility test, then files its case. Both are free.Step 2
A specialised partner lawyer reviews the characteristics of the dispute, the limitation period (the time limit to act), the completeness of the documents and the reasonable prospects of success. Not every case is accepted.Step 3
If the company applies for funding, Hello Justice analyses the case: amount at stake, solvency of the other side, duration and cost of the proceedings. This analysis costs €1,500 excluding VAT, or €1,800 including VAT, whatever the opinion. It ends with a written report and a funding opinion, favourable or not.Step 4
If the opinion is favourable, the company, its lawyer and Hello Justice sign the agreement, and the funding begins.
The remaining risk.
A case can be lost, last longer than expected, or end in an award the other side does not pay. If the case is lost, the company repays nothing to Hello Justice, but it does not recover its claim either. If the funding opinion is unfavourable, the analysis fee is still due.
Sources
- 1.Hello Justice, observation on the cases reviewed: cost and duration of high‑stakes proceedings, as listed in the glossary. Back to reference 1 in the text
