Pannone Corporate launches litigation funding

MANCHESTER law firm Pannone Corporate has teamed up with an external funder and an international insurer to provide a new litigation service to businesses.

The firm said less people are making claims because changes to litigation in the Jackson reforms have reduced the costs that can be claimed back from a losing opponent.

It is offering an insurance service called Resolve which seeks to reduce the financial risks involved in a court action.

This involves a tie-up with Therium Capital Management which has provided an undisclosed, seven-figure funding line, and AmTrust Europe, a provider of “after the event” insurance cover, which is taken out after a dispute to protect against the risk of having to pay the opponent’s legal costs if you lose.

Pannone Corporate said Resolve offers clients the opportunity to insure against the costs of losing, and obtain funding for some or all of their legal representation. Pannone Corporate says it will only take some or all of its fee if the action is successful.

Paul Jonson, managing partner and head of dispute resolution, said: “Although clients will have to forfeit a percentage of any damages awarded to those who have provided support and shared risk via Resolve, the advantage is that there is little or no cost of the litigation to a business’s balance sheet.
 
“Disputes can be costly and damaging to a business’s competitiveness and reputation. However, increasingly companies are deterred from pursuing claims because of the expense of litigation. Resolve is an ideal solution as it enables businesses to retain their competitive edge and often preserve the future of the business while at the same time mitigating against the impact of litigation costs on the balance sheet.”

Neil Purslow of Therium said: “Litigation funding has become, over recent years, a mainstream method for businesses to manage the costs and risk of disputes and offers the perfect complement to Pannone Corporate’s expertise and track record.”