Once we have identified the total financial exposure you face on your dispute, we will quantity for you how much of that financial exposure you can transfer using the methods of funding set out below. Each funding alternative transfers a separate and distinct portion of financial risk that you face. A combination of all three methods of funding can reduce your exposure significantly.

Conditional Fee Agreement (CFA)

Under a CFA, Addleshaw Goddard will agree to discount its fees by a fixed percentage (usually between 10% to 50%) from the time that we agree a discounted rate with you up to a specified point in the case, normally the determination or settlement of the dispute. During the life of the dispute, prior to determination by the Court or earlier settlement, all you will have to pay us is:

• our fees calculated at the discounted rate

• our expenses (which may include counsel and experts’ fees)

• VAT

If you lose the case, this is all you will ever have to pay us. A CFA allows you to transfer to us the cost differential between our normal rates and our discounted rates if you lose - the loss will be borne by Addleshaw Goddard, not you, if “success” (as defined in the CFA) is not achieved.

After the Event Insurance (ATE)

A CFA does not control your exposure to your opponent’s costs if you lose the case. An ATE Insurance Policy, which can be purchased after a dispute has arisen, achieves this: it indemnifies you against any liability to pay your opponent’s legal costs and expenses if you lose. It may be possible to extend the scope of this indemnity, if you lose, to cover the expenses that we might incur on your behalf, such as counsel’s fees or expert’s fees. An ATE policy can be a powerful risk transfer tool, shifting a significant degree of financial exposure away from you and on to the insurer if you lose.

Third Party Funding

A third party funder will provide funding for your legal team’s costs and expenses (including counsel’s and expert’s fees). If you lose the case, the funder will bear these costs and you will have nothing to repay. By entering into a third party funding agreement, you can therefore transfer the financial exposure to some or all (at your option - you can “part third-party fund”) of your own legal costs and expenses: you incur no actual cost of the day-to-day running of the litigation. In return, however, the funder will require a share of your damages if you win.