Sprinting ahead with funding for smaller claims

The self-proclaimed world leader in litigation funding has brought to market a funding option for smaller claims, reports Catherine Baksi

Publically-owned Burford Capital Limited has launched SPRINT, designed for cases valued between £25,000 and £500,000 - a segment of the legal market previously unable to access litigation funding.

The funding is designed to work in conjunction with a solicitor's conditional fee agreement and adverse costs insurance.

It will be marketed and administered exclusively by The Judge, a leading funding and insurance broker, with a 'low diligence, high speed process' that will enable most cases to receive funding within days.

Unlike larger cases with more complex economic arrangements, SPRINT will use a simple time-based rate card - so the quicker the case resolves, the lower Burford's price.

Nick Rowles-Davies, Burford's UK managing director, said: "The legal market has been crying out for an innovative product such as SPRINT.

"Until now lower value cases have not been served by the funding market. There is a real need for this type of funding in the marketplace."

He said: "This product works for clients with cases that would not historically have been able to use funding. It's for claimants that are thinking of using litigation finance at the start of their cases, and for those already involved in a piece of litigation."

Level playing field

Kerry Underwood is the founder of Underwood Solicitors

"Third party funding has a significant role to play in litigation of all kinds in a post legal aid and post recoverability legal world where clients will always have a significant deduction made from their damages.  "The availability of products dealing with claims worth thousands, rather than millions, is a welcome development for clients and law firms alike, especially those smaller firms where most claims are lower value ones. It helps level the playing field with the multi-nationals who are hoovering up law firms."