Short Guide To Litigation Terminology

All legally binding proceedings have their own language, one that might not always make sense to the average person. Litigation funding it no different, which is why we have put together this short guide as to which words are which and what they mean.

Access To Justice:
When a person has the ability to obtain legal advice or representation as well as adjudication through the courts.

Arbitral Bodies:
Arbitral Bodies have different fractions across the globe. They include, The International Chamber of Commerce (ICC), The London Court Of Arbitration (LCIA) and the Dubai International Arbitration Centre (DIAC).

Capital Adequacy:
During the litigation process third party litigation funders must be able to ensure that they can meet the financial obligations promised over the course of the claim.

Common Law:
This is an ancient law based on historic customs whereby laws are developed through the courts by judges based on the decisions of the courts. Also known as precedent.

Disclosure:
Disclosure is the term given to the instance when documents are made available to an opponent.

Estoppel:
This is a legal doctrine which states that a person cannot deny or contradict something that they have previously encouraged another party to accept.

Litigation Funding Agreement:
This is the contract between the third party litigation funder and the claimant. It details the funder and the claimant’s obligations as well as any circumstances through which the funder may withdraw.

Merits:
Claims will not be funded unless they have good legal merits. A 70% chance of success, based on merits alone, is often considered likely to have a successful outcome. Merits however aren’t the only element taken into consideration by a funder.

Non-Recourse:
Unlike conventional loans litigation funding is non-recourse which means if the claimant they are supporting is unsuccessful they have to write off the investment.

Part 20 Claim:
Under the Civil Procedure Rules, any claim other than a claim by a claimant against a defendant is a Part 20 Claim.

SRA Handbook:
The SRA Handbook contains all the regulatory arrangements for all solicitors, lawyers and alternative business structures. It is used to provide a common standard of protection for clients regardless of the type of legal support they contract.

Ultra Vires:
This term pertains to a legal person/company exceeding its legal powers or authority.