Third Party Financing in the Process of Lawsuit and Arbitration
“Third Party Financing” refers to the act of transferring of the expenses of lawsuit or/and arbitration the third party, having no relation to the case, by one of the parties of controversy.
Third Party financing does undertake the expenses of the case however, does not take sides in the case.
Within the scope of a specific budget; every expense related to the case is afforded by the third party including; attorney fee, court expense, expert fee and etc. and in case of winning the lawsuit, third party financing takes their share at the rate decided within the scope of the case. In case of losing the lawsuit, financing third party does not ask for a fee.
Third party financing services are offered to the local and international corporations and financial and public institutions and it includes 26 countries.
Karen Audit/ Consulting together with service provider in the relevant country offer consulting services on various fields and process is conducted together.
Third party to be decided in this process affords all expenses within the scope of the budget.
Third party financing companies: They finance the lawsuits and arbitration cases being preceded in the presence of international judicial authorities and world’s greatest arbitral institutions.
In order that third party financing company finances, case value is supposed to be at least 7, 5 million GBP (approximately 10 million Euros)
Since all expenses will be covered by the third party financing company through the end of the lawsuit/arbitration procedure, complainant will not make expense and charged with the commission as a result of the examination of the company in case of winning the case.
THE PARTIES
Debtee – Karen Audit/Consulting – Third party financing services
Financing Process
Making preliminary examination of case file, legal opinion, valuation report and etc. by the third party financing company
- Financing company’s presenting conditions
- Financing company’s presenting conditional litigation agreement
- Company’s conducting due diligence process by way of an expert in case of concluding above mentioned agreement
- Initiating financing process in case of concluding the process successfully.
How is cost of debt decided?
- Jurisdiction
- Enforceability
- Lawsuit Duration
- Collectability
- Winning Probability
- Merits of the case
