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On the 18 December 2017 Cavendish IP Solutions Ltd were successful in its application against an insolvent estate. After nearly 2 years of pursuing th...


December 18, 2017

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The Insolvency Exemption to the Litigation Funding Rules Ends Next Week

March 23, 2016

Have you planned for this change in law?


The first of April will see the end of the exemption which enabled the recoverability of CFA success fees and After the Event (ATE) insurance premiums from the unsuccessful party to litigation comes to an end, bringing the insolvency profession fall in line with other civil litigation.


Other options for funding claims do exist and the recent expansion of the rights of assigning claims to third parties of Insolvency claims means that it will still be possible to bring cases even if the estate has no funds to pay for solicitors and insurance in its own right enabling IPs to make a realisation without the risk of litigating.


Government will be reviewing the reforms prior to April 2018, but we doubt that the position will be reversed given the pressures to reduce litigation costs.


The insolvency litigation landscape is in flux but the existence of other options means that it is far from the end of the road with respect to bringing claims in litigation.


Cavendish IP Solutions can provide a range of funding and assignment options to assist with your litigation needs in this new landscape.  Contact or call 0207 612 7631 to discuss how we can help.

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