Claimant And Enforcement Require Equal Appraisal, Says Top Funder
When evaluating the potential of entering into a funding agreement with a prospective client, funders must weigh a number of factors, when evaluating the merit of a case and what any potential outcome could entail, whether that be financial return or loss. In the latest of a series of analysis, Glyn Rees of Augusta Ventures, has provided two new articles with insights into how funders should evaluate both a claimant’s legitimacy and what enforcement factors could affect the funder’s return on investment. When analysing the potential client’s merit, Mr Rees argues that any prospective funder should first consider whether the claimant has experience in pursuing proceedings, and if so, what their motivations are for this latest claim. Additionally, it is worth assessing the claimant’s financial situation in case there is a risk of insolvency, which could affect proceedings and what their expectations are for any final settlement. On the enforcement side, Mr Rees primarily focuses on the point that no funder should engage in a case where success would come with only symbolic return, rather than financial gain. Moreover, he highlights the need to undertake detailed inspection of the defendant’s resources and consider where the seat of arbitration is, as this may be the biggest factor in determining how enforceable any settlement is.
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