How litigation funding works

We have the ability to close funding deals in 4 weeks.

From Request for funding to Funding agreement

Deminor’s decision-making and documentation process is one of the most efficient in the market. We are able to close litigation funding deals in 4-6 weeks, subject to securing the necessary information for case assessment.

Erik Bomans
Chief Executive Officer

The litigation process

Deminor offers two possible options for the management of its litigation project. The client and his/her lawyer choose Deminor’s level of involvement. Due to regulatory restrictions in certain jurisdictions, Deminor’s role may be limited to funding only.

Funding and litigation management support

In this model, Deminor offers additional litigation management services without additional fees. At the client’s request, Deminor may suggest the engagement of lawyers, review of written submissions, preparation of evidence documents, damage assessment, coordination between lawyers, experts and other advisors, settlement negotiation and execution support, etc.

Funding only

Deminor’s role in this option is limited to funding and the client manages the litigation with his/her counsel. Deminor will be kept informed about all developments in the case and may offer some passive support at the request of the client or counsel. Strategic decisions with potential impacts on funding (and thus, Deminor’s interests) may however require Deminor’s consent, unless the contract specifically provides that no such consent is required.

The client remains
the ultimate decision maker

Even if Deminor provides litigation management support services, the client remains the ultimate decision maker. Deminor does not have a veto right and will never impose a decision. However, some caveats are laid out in the contract to protect the interests of the funder, for example when the client wishes to terminate the contract or accept a settlement at conditions below fair value.

Litigation Funding in 3 steps

1. Request for funding

Mutual NDA is signed.
Client delivers full information set to Deminor.

2. Funding agreement

Deminor starts free 3-tier assessment:
1. Quick assessment
2. Due diligence assessment
3. Investment Committee decision
Client is kept informed about decision-making process
Funding proposal is delivered within 4 to 6 weeks
Signing of the funding agreement

3. Settlement or Court Judgement

Deminor pays all costs as from signing of the funding agreement.
Deminor can assist the Client during the litigation (optional).
Either a compensation is obtained and the Client is charged the predetermined success fee, or in case no compensation is obtained, the Client owes us nothing.

Do you want to learn more about Litigation Funding?

Why would a corporation make use of third-party funding for its litigation or arbitration claims? Does it work for all claims? How does it work and what are the steps from initial assessment to closing of the funding? These and many other questions will be addressed in our Litigation Funding e-book.

Download our e-book

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Get in touch with one of our experts.

Do you have questions about a case?

Examples of Litigation Funding cases

Business Interruption Claims

In 2021-2022, Deminor helped several business owners in France in their pursuit of indemnification from insurance companies for losses suffered due to lockdown ...

How does Deminor assess cases? Example with a M&A Dispute in Asia

Background

Deminor worked closely with a Hong Kong law firm which was seeking funding for an HKIAC arbitration, with Hong Kong law applicable, arising out of an...

Litigation funding supports a partner in a joint venture

An Italian company Vengari SpA set up a joint venture (‘JV’) with French company Gonier SA for the production of goods in a special common segment of their resp...

In addition to providing litigation funding and support for investment recovery and group antitrust actions, Deminor renders the same world-class support to companies with individual B2B claims.

Regulatory restrictions in certain jurisdictions
Litigation funding and claims management services are subject to restrictions in certain jurisdictions. Deminor does not and is not authorised to carry out any regulated claims management activity in the UK. Deminor will comply with any applicable laws and regulations and where required, our funding agreements will be adapted to be compliant with any local laws and regulations.

How litigation funding works

From Request for funding to Funding agreement

Deminor’s decision-making and documentation process is one of the most efficient in the market. We are able to close litigation funding deals in 4-6 weeks, subject to securing the necessary information for case assessment.

The litigation process