Assess whether a claim is suitable for third-party funding based on merits, quantum and enforcement prospects.
Law & Contract Management
Third-Party Litigation Funding and After-the-Event Insurance
Structure third-party litigation funding and after-the-event insurance arrangements that finance a claim without ceding improper control or exposing the client to disguised costs.
🗓️Duration5 training days
📚Content4 modules · 8 sessions
🎓On completionAccredited attendance certificate
About the programme
Course Overview
Litigation funding has moved from a niche solution for claimants without resources to a mainstream financing tool used by well-capitalised companies to manage litigation risk off balance sheet, but the funding agreement itself now shapes how a case is run almost as much as the underlying facts do. This course teaches participants to structure a third-party funding arrangement and complementary after-the-event insurance so that the claimant retains control of the litigation, the funder's return is commercially sound, and the arrangement survives scrutiny from the court, the opposing party and any relevant funding code of conduct. Sessions cover approaching and selecting a funder, surviving funder due diligence on the merits and quantum of the claim, and negotiating the funding agreement itself, including the funder's return multiple, budget approval rights and the boundaries around funder involvement in strategy that keep the arrangement free of maintenance and champerty concerns. The course pairs this with after-the-event insurance, explaining how ATE premiums are priced, when they are recoverable from a losing opponent, and how funding and insurance arrangements are typically layered together in high-value commercial and portfolio claims. Practical exercises include negotiating heads of terms with a funder and assessing a portfolio funding proposal across multiple claims.
Expected Learning Outcomes
Prepare a claim for funder due diligence, including case theory, budget and risk assessment.
Negotiate a litigation funding agreement covering return multiples, budget control and termination rights.
Identify and avoid funding terms that risk improper funder control over litigation strategy.
Structure after-the-event insurance to cover adverse costs exposure alongside third-party funding.
Advise on the recoverability of ATE premiums and funder returns from an unsuccessful opponent.
Evaluate a portfolio funding proposal spanning multiple claims and jurisdictions.
Who Should Attend
In-house counsel considering litigation funding for high-value commercial claims
Litigation funders and insurers assessing claims for funding or after-the-event cover
External litigation lawyers negotiating funding agreements on behalf of claimant clients
Chief financial officers evaluating litigation funding as an off-balance-sheet financing option
Insolvency practitioners funding claims on behalf of a company in administration or liquidation
Risk managers assessing adverse costs exposure and insurance options for active disputes
Course Modules
Select any module to see its sessions and points.
01Deciding Whether to Seek Litigation Funding
2 sessions · 8 points
Session 1Assessing Suitability for Third-Party Funding
- Evaluate the merits, quantum and enforcement prospects of a claim before approaching a funder.
- Distinguish single-case funding from portfolio funding across multiple claims or business units.
- Assess the commercial case for funding a claim off balance sheet rather than funding it internally.
- Identify claim types, including insolvency and class or group claims, where funding is most established.
Session 2Approaching and Selecting a Funder
- Prepare a funding proposal presenting case theory, quantum and litigation budget to a prospective funder.
- Compare funder terms, including return structures, minimum returns and termination triggers.
- Assess a funder's financial standing and track record before entering into an agreement.
- Understand applicable litigation funding codes of conduct and their disclosure and capital adequacy expectations.
02Negotiating the Funding Agreement
2 sessions · 8 points
Session 1Structuring Return, Budget and Control Terms
- Negotiate the funder's return, whether a multiple of investment, a percentage of proceeds or a combination.
- Set budget approval and reporting obligations that keep the funder informed without ceding strategic control.
- Draft termination and step-away rights defining when a funder can withdraw support from a case.
- Address funder consent rights over settlement without allowing the funder to force or block a settlement.
Session 2Avoiding Maintenance and Champerty Risk
- Explain the historical maintenance and champerty concerns that continue to shape funding agreement drafting.
- Draft clauses that preserve the claimant's and counsel's control over litigation strategy and settlement.
- Identify funder involvement that risks being characterised as improper control of the litigation.
- Address confidentiality and privilege issues arising from disclosure of case information to a funder.
03After-the-Event Insurance and Adverse Costs
2 sessions · 8 points
Session 1Structuring After-the-Event Insurance Cover
- Explain how after-the-event insurance covers adverse costs exposure if a funded claim is unsuccessful.
- Assess how ATE premiums are priced based on the merits and stage of the underlying claim.
- Coordinate ATE insurance terms with the litigation funding agreement to avoid coverage gaps.
- Identify exclusions and conditions in an ATE policy that could leave adverse costs exposure uninsured.
Session 2Recoverability and Cost Allocation
- Advise on the circumstances in which ATE premiums or funder costs may be recoverable from a losing opponent.
- Assess the interaction between funding and insurance arrangements and standard costs budgeting rules.
- Prepare disclosure of funding arrangements where required by court rules or arbitral procedure.
- Address security for costs applications against a funded claimant and how funding affects the analysis.
04Portfolio Funding and Ongoing Management
2 sessions · 8 points
Session 1Structuring Portfolio Funding Arrangements
- Evaluate a portfolio funding proposal spanning multiple claims with varying risk and value profiles.
- Negotiate cross-collateralisation terms where returns from successful claims offset losses on others.
- Allocate funding proceeds and priorities across claims within a single portfolio arrangement.
- Assess governance arrangements for adding or removing claims from a portfolio during its term.
Session 2Managing the Funded Claim Through to Resolution
- Maintain regular reporting to the funder consistent with the agreed governance and budget terms.
- Manage settlement negotiations in a way that respects funder consent rights without ceding control.
- Reconcile final proceeds, funder returns and ATE premium payment on resolution of the claim.
- Review the funding relationship after resolution to inform future funding and insurance decisions.
What the participant receives
4 course modules
A structured syllabus
8 training sessions
across 5 days
32 detailed points
Applied, detailed content
Accredited attendance certificate
On completing the programme
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