Streamlining Litigation Funding and ATE Insurance for Professional Negligence Claims

Introduction

Professional negligence claims require careful evaluation, funding for disbursements and counsel fees, as well as adequate insurance coverage to protect against adverse costs. This case study focuses on Law Firm B’s experience in seeking litigation funding and After-the-Event (ATE) insurance for a professional negligence claim. By utilising Sentry Funding’s streamlined process and the benefits of the Sentry Portal, Law Firm B was able to secure funding and insurance swiftly, leading to a successful resolution of the claim.

Problem

Law Firm B, having learned about Sentry Funding through our marketing efforts, sought assistance in arranging litigation funding and ATE insurance for a professional negligence claim. The claimant had allegedly received negligent advice from a tax adviser and sought compensation from the adviser’s professional indemnity insurer. Law Firm B needed financial support for disbursements and counsel fees while ensuring coverage for potential adverse costs.

Solution

Sentry Funding provided Law Firm B with a comprehensive solution through their efficient processes and the use of the Sentry Portal. By utilizing the portal, Law Firm B was able to streamline the application and assessment process, saving valuable time and effort.

Detailing the Solution:

1. Registration and Demonstration: Law Firm B registered online for access to the Sentry Portal. They received a short demonstration, familiarizing themselves with the platform’s features and capabilities.
2. Decision in Principle Application: Through the Sentry Portal, Law Firm B completed a decision in principle application. The portal’s automated system assessed the merits of the claim against a wide range of litigation funders and ATE insurers, providing an instant decision on the claim’s funding feasibility.
3. ATE Cover and Litigation Funding: Within just 5 days, Law Firm B secured ATE insurance coverage from an A-rated insurer, safeguarding against potential adverse costs. Additionally, litigation funding was secured within 14 days, enabling Law Firm B to pursue the claim against the tax adviser and professional indemnity insurer.
4. Efficient Case Presentation: By utilizing the Sentry Portal, Law Firm B presented the case to their chosen litigation funder and ATE provider in a simplified and streamlined manner. This approach facilitated faster decision-making and reduced the time required for funding approval.

Conclusion

By leveraging the Sentry Portal’s capabilities and utilising Sentry Funding’s expertise, Law Firm B successfully secured litigation funding and ATE insurance for the professional negligence claim. The defendant settled the claim within a remarkably short period of 6 weeks from the execution of the funding agreement. Through the use of the Sentry Portal, Law Firm B saved extensive time and effort that would have otherwise been spent researching the market and making applications with multiple funders. The simplified and efficient process allowed for faster turnarounds, enabling a swift resolution to the case.

Note: This case study highlights the benefits and efficiencies offered by Sentry Funding and the Sentry Portal. However, it is essential for law firms and claimants to consult with legal professionals and consider specific circumstances when seeking litigation funding and ATE insurance for professional negligence claims.

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December 7, 2020

Case Studies