
How does litigation funding work?
Allianz ProzessFinanz pays for all or part of the costs of pursuing a claim and bears all the risk of the claim not succeeding. In consideration for so doing, Allianz ProzessFinanz receives a share of the proceeds recovered in the claim.
Only the direct and indirect costs of a case are funded. Those costs are repayable only if there is a positive outcome to the claim and proceeds are recovered. If the claimant wins the case, then Allianz ProzessFinanz receives a share of 30% of the net proceeds recovered (gross proceeds after repayment of the costs paid). If the case is settled within 6 months after the signing of the Financing Agreement, Allianz' share is reduced to 20% (again net of costs).
Litigation funding also operates as a type of guarantee against the claim failing. If the claimant unexpectedly loses his case, then Allianz ProzessFinanz bears all the costs of the case.
Costs
Allianz ProzessFinanz may fund:
- Lawyers fees
- Court fees
- The cost of a credit assessment of the opposing party
- Costs for experts and their opinions
- Coverage of advances / deposits
- Other costs related to the case
The costs are repaid first from the proceeds recovered in the claim after a judgment or settlement. If the proceeds do not cover all of the costs incurred and funded, then Allianz ProzessFinanz bears the loss of costs it has paid.
Allianz' share of the net proceeds recovered in the claim
The amount of Allianz' share is based on the duration of the proceedings. Allianz receives a share of 30% of the net proceeds resulting from a case. Net proceeds in this case means gross proceeds after repayment of the costs of the case (including costs paid by the claimant). If a case concludes by a judgment or is settled within 6 months after the signing of the financing agreement, Allianz' share is reduced to 20%.