Maintenance and Champerty in Ireland
Irish citizens have a legal right to pursue actions through the courts. Yet being involved in a legal dispute can quickly become a challenging financial burden, resulting in spiralling costs as the case develops. Here at Claims Funding we know about the difficulties in financing legal battles . We are dedicated to offering an ethical and transparent funding service. Our funding solutions offer a non-recourse policy (no win, no fee), that can be utilised to assist and strengthen legal actions mostly in Personal Injury claims, helping with disbursement costs, but also medical, rehabilitation and living costs that might transpire during the process.
Disbursement funding might instil a sense of hesitancy among some individuals, litigation funding as a rule because of Maintenance and Champerty laws in Ireland is currently prohibited under Irish law. However, there are a number of different forms of funding arrangements possible, which do operate within the law. Our services at Claims Funding offer financial assistance to claimants similar to many law firms by providing a solution that is well within legal parameters in order to aid Irish citizens with their disbursements costs. Rather than covering a solicitor’s legal fees, our services offer support for the legal disbursements required to complete a claim. As previously stated, we also offer assistance with aiding the financial burden that can arise through medical, rehabilitation and living costs, thus allowing you to reserve your resources for legal fees if required whilst the case is ongoing. In order to alleviate any fears and provide clear and honest transparency, let us explore how Claims Funding operates and how our services can assist you .
To define Maintenance and Champerty, It is a form of litigation funding conducted by a third-party with no legitimate connection or interest with the litigation in question. To put it simply, it is someone helping another individual to ‘maintain’ a lawsuit, usually done so through financial assistance in exchange for a percentage of the quantum. Maintenance involves improper interference in civil proceedings often by way of the provision of financial assistance in paying legal fees. Champerty is a form of maintenance whereby financial support is provided by a third party to pay legal fees whom have no connection to the dispute, in exchange for a share in the settlement amount of the litigation , In Ireland, non-party funding of litigation is only permitted where it does not breach either of these prohibitions.
Maintenance is not an issue as we do not accept or fund any part of a claim until the claim is in being and either lodged with PIAB or through the court system . (This distinction is very important as it clearly means we do not traffic or encourage claims in any way ). These funding practices are considered criminal offences or torts (civil wrongs) and are in place so as to ensure the integrity of the legal process is upheld. Since the 1600s, Maintenance and Champerty have been considered an illegal offence, hoping to prevent the peddling of litigation for profit, as well as inhibiting individuals who may have an improper motive for influencing the litigation process. Despite these laws being established many centuries ago it is still regarded as an abuse of the legal system in Ireland, other modern legal jurisdictions such as the USA Germany and Australia understand the requirement for litigation funding mainly because of the need for legitimate claimants to gain access to Justice and have therefore legalised the practice. In the UK they have also introduced a rehabilitation code to protect claimants who need early monetary intervention to help with Medical rehab, Insurers often make support payments to claimants throughout the ongoing legal case. This is something that we believe is vital in certain personal injury Medical and clinical negligence cases.
As it stands, any direct funding of litigation by a third-party is considered a criminal offence. However, it is legal for plaintiffs to indirectly fund their legal proceedings through taking out an ‘After The Event’ (ATE) insurance policy. This insures plaintiffs against the danger of having to cover the defendant’s legal costs, alongside their own, if found to be unsuccessful in their claim. Claims Funding’s services have similarities to ATE in that they both offer indirect funding solutions for a litigants costs. To clarify, Claims Funding do not pay for your solicitor’s legal fees, we provide financial assistance towards the additional disbursements and personal expenses that might accrue during the process.
For a claim to be successful , it may become necessary for your solicitor to provide evidence that improves or strengthens your claim. This may be offered through an expert opinion medical report or specialist consultants reports . These all contribute to the costs of running the claim, often becoming increasingly expensive which can sometimes prevent claimants from putting forth the strongest case possible . By choosing Claims Funding, we can alleviate this pressure through providing funding assistance for such costs. This funding does not fall foul of the laws of Maintenance or Champerty as it does not fund the legal case itself, the funder does not encourage your claim as it is already in being before they get involved and they do not take a percentage of the claim value. Claims Funding therefore helps alleviate the stress of financing expenses, allowing you to pursue the litigation to the best of yours and your solicitor’s abilities.
Alongside disbursements, carrying out a legal case can rapidly result in huge expenses towards necessities such as travel costs, loss of earnings during the court case, and any medical fees that may be applicable. These costs can cause untold strain on your finances, if you are not in a strong financial position to cover these, it is essential you find assistance in order to ensure your litigation can reach its conclusion. At Claims Funding, we are here to help and are dedicated to providing the best service possible towards your financial needs.
Before conducting any litigation proceedings, it is important to consider all costs that may occur as the case develops, and it is essential to ensure you are in a stable position to cover expenses that might arise unexpectedly. By choosing Claims Funding, you can be confident that our team are here to help provide financial assistance towards your claim, offering a valuable service that is dedicated to helping Irish citizens get the support needed in order to pursue the justice they deserve.
If you are currently pursuing a personal injury claim do not hesitate to get in touch with our dedicated customer service department. Personal injury claims are expensive and stressful. Operating on a ‘no win, no fee’ basis, Claims Funding are here to provide the support required to pursue your legal challenge.