Challenging funding arrangements—general principles

Produced in partnership with Nicholas Lee of Paragon Costs

Practice notes

Challenging funding arrangements—general principles

Produced in partnership with Nicholas Lee of Paragon Costs

Practice notes

This Practice Note is concerned with challenges to Funding arrangements associated with retainers and considers:

•
what is a funding arrangement?
•
why would you challenge a funding arrangement?
•
how to challenge a retainer-based funding arrangement

For more information on challenging Contracts generally, see: Terminating contracts—how and when a contract ends—overview.

For further information on litigation funding in general, consider Practice Notes:

•
Litigation funding—introduction to funder's perspective
•
Litigation funding application process

What is a funding arrangement?

There are two forms of funding arrangement:

•
a funding arrangement which works as, or in conjunction with, a retainer between solicitor and client (retainer-based funding arrangement)
•
a contractual agreement between a litigant and a third-party funder who is now the litigant’s legal representative (third-party litigation funding)

It is important to recognise the distinction between the two, as they are challenged in different ways and different costs recovery rules and principles apply in respect of different types of funding arrangements.

Retainer-based funding arrangements

Retainer-based funding arrangements typically take the form of or are incidental to

Access this content for free with a 7 day trial of LexisNexis and benefit from:

Instant clarification on points of law
Smart search
Workflow tools
42 practice areas

Would you also like a quote?

I confirm I am a lawyer or work in a legal capacity, intend to use LexisNexis products for business purposes and agree with the terms and conditions.^**

^**Trials are provided to all LexisNexis content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisNexis services please email customer service via our online form. Free trials are only available to individuals based in the UK, Ireland and selected UK overseas territories and Caribbean countries. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.

Nicholas Lee

Paragon Costs

Nick began his career in costs in 2001. He qualified as an Associate of the Association of Law Costs Draftsmen in January 2009 and became a Fellow in January 2011. Following the Association being granted Reserved Legal activities under the Legal Services Act in 2007, he was admitted as a Costs Lawyer in 2011. The Association changed its name to the Association of Costs Lawyers in 2011.

Nick worked in-house from 2001, attaining Associate status, Director of Costs and Fixed Share Partner for a Top 100 Law Firm.

In 2011, Nick created Paragon Costs Solutions which now has offices in London and Bristol. Clients have included many Top 100 Law Firms, Local Authorities, Insurers and International Banks.

Nick joined the Bristol Law Society, as a Council member, in 2013. He subsequently was elected Treasurer in 2015, Junior Vice President in 2016 and Senior Vice President in 2017, paving the way for a Presidential year in 2018/19.

Nick is a frequent public speaker having arranged numerous costs seminars. He has also been invited to speak at litigation conferences for the Bristol Law Society, Junior Lawyer Divisions, CILEX and other membership organisations.

He has written articles for the Personal Injury Law Journal, Personal Injury Brief Update Law Journal, Legal Life, Claims Magazine and the Costs Lawyer publication.

Reported Cases:

Bocacina Ltd v Boca Cafes Ltd [2014] EWHC 26 (IPEC)

Jurisdiction(s):

United Kingdom

Key definition:

Fund definition

What does Fund mean?

Includes any estate or property held for the benefit of any person or class of person and any fund to which a trustee or representative'>personal representative is entitled in that capacity

Challenging funding arrangements—general principles

Produced in partnership with Nicholas Lee of Paragon Costs