Litigation Funding for Pricing Officers

No one likes the person constantly nagging about the cost of things; what a buzz kill. But without that person, a Pricing Officer, projects wouldn't meet budgets, firms wouldn't have enough money to pay their employees, and you wouldn't have a job.?

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A Pricing Officer is appointed to cost a project and determine what resources are required and the level of expertise needed for project profitability. Using a Pricing Officer, a firm can offer their clients the estimated cost for a particular project which will help them establish a budget or ensure financing is available.

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A relatively new profession within the legal industry, Pricing Officers within this sector aim to be more proactive when setting their pricing strategy. This means they won't simply respond to the market. Instead, they will work with clients and the law firm to determine the range of services needed for a claim or lawsuit, the claim's value, the pricing of it all as a whole, and even whether other payment structures are required.?

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Within a law firm, a Pricing Officer will assess past pricing information, contribute to complex budget calculations, review all finances, and keep an eye on margins and other financial information and procedures. On the client-side of things, you'll find them corresponding with clients to ensure the law firm reaches optimal profitability. This includes discussing fee discounts, caps and contingencies, and the possibility and availability of litigation funding.?

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A Pricing Officer and Litigation Funding?

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It's essential for Pricing Officers to understand the ins and outs of litigation funding just as well as they do their other pricing tools. Wild Dog partners with the Pricing Officer and helps them to knowledgeably explain to their clients how they can access litigation finance via a third party funder to represent the amount of their lawsuit. In addition, the law firm's finance department will want to know how to use a lawsuit loan to capture capital-constrained clients and defer company risk. This is why law firms benefit from establishing a close relationship with Wild Dog, and the relationships that we have with reputable litigation funders, as we understand the funding process and how these decisions and procedures can help the law firm.?We are also experienced in matching law firms and their clients to the best litigation funder for the specific matter or portfolio, as funders specialize in different areas of claims.

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Litigation Finance is integral to the legal landscape and should be driven by Pricing Officers, not the clients and their lawyers. It's the job of the law firm to appoint Pricing Officers and for them to understand the complexity and variety of funding offerings. The law firms that do this will be better off.?

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What can be financed by Litigation Funding?

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1. Attorney’s fees

Attorneys charge by the hour. This can be extremely pricey and can often extend above the amount a claimant is willing or able to pay. In this case, financing needs to be found. The law firm can sometimes offer limited assistance without litigation funding. They may suggest holding back some or all of their fees for a share in the recovery, if they believe the claimant's case will have a positive outcome. This is called contingent representation. Another option is for the law firm to take the case on a full contingency basis. You'll find, in this case, a lawsuit loan is often still needed for the disbursements. But mostly, law firms understand that working with a litigation funder is the best option. This way, they can perhaps discount their fees and work with the funder to cover the amount owed. They can then guide realisation rates and cover HR costs while keeping clients and accessing any financial upsides from the lawsuit.

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2. Disbursements

Besides paying for the time the attorney spends on your case, there are many other costs to cover and law firms are hesitant to cover these costs themselves—it just doesn't make good business sense. Some of the costs litigation funding covers include disclosure, experts, counsel fees, travel costs, transcripts, trial bundles, and much more.?

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3. Contingency practices

If a law firm is growing its contingency practice, it may request a litigation funder come on board and offer capital across its portfolio. This way, the law firm will suffer fewer risks, and it can bring on more clients. But, of course, returns for these investments will be lower than funding a single case. This is because the proceeds from winning a claim may be used to offset the spending on a claim that has been lost.?

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4. Judgements

It may take a long time for the money to be accessed when it comes to claiming the recovery. This is generally the case when there are sizeable verdicts that are contested. And so, litigation funding helps when a client needs the money immediately.?

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When should Pricing Officers reach out to Wild Dog?

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The best advice is for Pricing Officers to build a relationship with Wild Dog before the law firm even needs funding. That way, when it's crunch time, and you have a claim that needs funding, you are all set up and ready to move forward with a partner you can trust. This will expedite the process of arranging finance for your lawsuit. Another bonus is that you'll have all the answers when your client asks about litigation funding, the procedures, and the available funding capital. This is especially true at this time, in the current economic climate, having experienced a global pandemic. Many more clients have found themselves in financially uncertain times with fewer cash reserves than before. As a result, Pricing Officers are faced with more requests for discounts and alternative billing arrangements than ever before.?

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Litigation Funding can help law firms budget better

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Let's be honest; attorneys prefer to litigate, not budget. This makes the work of a Pricing Officer tricky at times. Attorneys struggle to focus on pricing and budgeting. But having a litigation budget will make their budgeting easier. The attorney may receive some pressure from their law firm to keep within the budget set out by the funder so that there are no remaining overages that fall on the firm or the claimant at the end of the case. So, although they may not love working to a budget, having a breakdown between fees and disbursements by case milestone is very helpful. And, since Litigation Funders are so experienced in putting these budgets together, they will reflect the litigation strategy and provide beneficial guidance where the firm is struggling to figure out the structure and spend amounts. Litigation funders often include caps at various phases or milestones to ensure the capital is maintained and lasts to the final stage of the case. The Pricing Officer's job is to keep an eye on the budget throughout the case so that each financial milestone is reached without any issues.?

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If you want to stay up-to-date with what is going on with non-recourse litigation funding, Wild Dog serves as a trusted advisor to attorneys and their clients who are exploring litigation financing. So follow our Linkedin Page for the latest updates on?https://www.dhirubhai.net/company/wild-dog-mu ?or visit our website?https://wilddog.mu ?for more.