A consortium of litigation firms is offering a commercial dispute resolution on a ‘no win, no fee’ basis backed by external funding.
Caresso Law, which opened for business last week, provides a 'fully funded' litigation service for claims where damages are below £5m.
Currently made up of four firms, it offers clients immediate after the event (ATE) insurance, typically reserved for personal injury and clinical negligence claims.
The consortium, which covers ‘most types of commercial disputes’, is managed by a media agency called EightFooted, which takes a cut of firms' fees after the successful conclusion of cases.
Lee Jones, CEO of EightFooted, said: ‘Our research shows that the legal services market in the UK is ripe for change. We have worked with the firms to develop a unique commercial litigation service that meets technological and financial challenges head on.’
He added that the consortium is committed to access to justice and bringing litigation funding ‘into the mainstream’.
‘This is streamlined litigation at the more moderate end of the scale,’ he said.
David Haynes, underwriting and marketing director of ARAG plc, which provides insurance to Caresso Law, said: ‘Many individuals and smaller businesses with well-founded claims are prevented from pursuing their legal rights because they cannot fund their case. Caresso Law is offering a new solution that will reduce both the risk and cost of seeking justice.'