Augusta Ventures funds ten professional negligence claims against solicitors

Nearly three-quarters of cases funded by Augusta Ventures, a litigation funder targeted at SMEs, are either breach of contract or professional negligence claims.

Statistics released by Augusta since its launch in 2014 show that out of the 56 cases funded, 41 per cent (23) of claims have been for breach of contract and 32 per cent (18) for professional negligence claims.

Ten of the professional negligence cases have been brought against solicitors.

The analysis showed Augusta has invested between £7,000 and £570,000 per case to date, totalling £12.8m, with an overall win-rate of 93 per cent.

Barristers receive 32 per cent of the funding, followed by solicitors (27 per cent), disbursements (21 per cent), and after-the-event insurance (20 per cent). Just over half of the claimants funded by Augusta have been individuals.

The time it takes for a litigation claim to reach its climax has also sped up according to the evidence. On average, a case takes 9.6 months as opposed to an initial estimate of 16.7 months, despite one in every five cases going to court.

Augusta engagement director Jeunesse Edwards commented: 'Let no one doubt the high level of demand for funding out there from both individuals and companies. This is not big businesses suing each other for paper money - it is about people who need help to enforce their rights so as to keep their businesses afloat or the roof over their heads.'

She added: 'Litigation funding puts legitimate pressure on the defendant - it says that the funded party will not be bullied simply because of the costs being racked up and, more importantly, that an independent third party with a lot of money to lose thinks that it is a strong case. It is no surprise, therefore, that claims are settling quicker as a result.'

Over 400 law firms have expressed interest in working with Augusta, and the funder is now working with 43 of them.

Matthew Rogers is an editorial assistant at Solicitors Journal matthew.rogers@solicitorsjournal.co.uk