Commercial Third party Litigation Funding

Allianz ProzessFinanz GmbH

London, 22 January 2008

2

Litigation Funding is

Allianz ProzessFinanz GmbH

... not banking

… investing in claims, and trying to generate the best possible outcome for the client.

... not insurance

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Particuliarities of the UK funding market

The legal system is very efficient

Proceedings are extremely expensive

Public policy issues

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Efficiency

Case Management Conferences: useful tool

Average duration of 1 – 2 years to judgement

Appeal proceedings are even quicker (6 – 12 months)

Use of mediation increases probability of early settlement

Trial costs cause last minute settlements

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Costs

We estimate the costs to be 5-10 times higher in the UK than in Germany, Switzerland and Austria, due to:

•Duplication of costs (solicitors/barristers, party-appointed experts)

•Disclosure

•Interlocutory applications

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Champerty and maintenance

•Political backing to reduce restrictions

•Less involvement by the funder

•Regulation may be on the way

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Suitability of proceedings for funding

UK

•Fast•Expensive•Complicated costs (assessment)•Suitable for high value cases•Efficient (CMC)•Adaptable/flexible (ATE, CFA)

Germany, Switzerland, Austria

•Slow•Inexpensive•Set-fee regime (simple costs)•Suitable for small claims as well•Inefficient (step by step)•No need