Communication and Speed at the Core of Productive Funder-Lawyer Partnerships

There can often be tensions between law firms and litigation funders, especially in the early days of partnership. As a result, there are those in the legal industry who are wary of working with funders. However, Sarah Breckenridge, who has served as both the head of a disputes team at a global law firm and now as an investment manager at a litigation funder, offers a balanced perspective which emphasises the need for efficient and open communication between the two sides. 

Writing for the Dispute Resolution Blog, Breckenridge offers advice to both factions that can hopefully lead to more efficient and effective communications.

Looking at funders, she emphasises the need for a speedy response when considering whether to enter into a funding agreement with a client, even if the answer is the funder declining. This approach should also be reflected when sharing timings and terms of any agreement, as both the lawyer and claimant will be juggling many responsibilities.

On the other side, Breckenridge also acknowledges a range of factors for law firms to consider. These include having detailed and realistic budgets prepared, similarly thorough projections of potential quantum if the case is successful, and stress-tested legal opinions on the case’s merits to demonstrate the value to the funder.

While issues will inevitably arise in negotiations and communication, thinking primarily about the other side’s needs and requirements builds a strong foundation for relationships between funders and law firms.