IMF welcomes applications for funding from within Australia and from any other jurisdiction.
The process of applying for funding is easy. Please feel free to contact one of our staff if you want further information. We would be happy to discuss your claim and whether it would be suitable for funding.
Normally what happens is:
- The person with the claim (the “litigant”) or their solicitor completes and submits a Proposal Form to IMF. This is an application for funding.
- IMF reviews the proposal and enclosed documents, and requests further information if required.
- IMF obtains fee estimates from the lawyers and, if the matter is to be funded, IMF will make an offer of funding, by sending the litigant or their lawyer a funding agreement. Each funding agreement is slightly different because no case is the same.
- The offer usually provides that IMF will pay the fees of the lawyers and pay any adverse costs order. IMF may also provide security for costs if security for costs is ordered by the Court. In return, IMF receives an assignment of part of the fruits of the action and is entitled to be paid its fee (commission and project management fee) and the costs it has paid, from the recoveries.
- IMF’s commission is normally a percentage of the settlement or judgment proceeds. Further, the commission normally reduces the earlier the litigation is resolved.
- IMF’s commission normally ranges between 20% and 45%. Factors affecting the percentage include:
- the level of legal fees and disbursements expected to be incurred;
- the strength of the case;
- the likely capacity of the defendant to meet a judgment; and
- the time it will take for the case to be completed.
- If the litigation is lost, IMF receives no return and will pay any adverse costs order (in respect of costs incurred during the term of the funding agreement).
- There are 3 types of Litigation Funding Agreements used by IMF as follows:
- Insolvency - this category covers agreements with insolvency practitioners;
- Non Insolvency - this category includes all recipients of funding who do not fall into either the insolvency category or multiparty category referred to below; and
- Multiparty - this category covers class actions and large group actions.
- The agreements seek a balance between the interests of the funded party and the interests of IMF.
- If you would like to see a sample Funding Agreement please let us know.