Litigation funding (legal aid, CFAs, Contingency Fees, Third Party Funders, Jackson review)
Contingency fees – the litigation funding system operating in the US where a lawyer agrees to take a percentage of a damages award if he wins the case, and not to be paid if he loses the case. Normally the percentage taken by the lawyer amounts to around 30%.
Conditional fees – the litigation funding system operating in the UK where a lawyer agrees to take an ‘uplift’ on his usual hourly fee (up to 100%, but usually less than that) if he wins the case, and not to be paid if he loses the case. This system in the UK is accompanied by the After-the-Event Insurance policies which the parties take in order to cover the possible obligation to cover the costs of the other party (‘loser pays rule’).