BRITISH VIRGIN ISLANDS Law and Practice Contributed by: Alex Hall Taylor KC, Richard Brown, Tim Wright and Simon Hall, Carey Olsen
2.4 Minimum and Maximum Amounts of Third-Party Funding Different funders take different approaches but most will be reluctant to consider a case where costs are likely to exceed 10% of recoveries. The market for funding litigation in the BVI is expanding and so a range of funding options is likely to be available. 2.5 Types of Costs Considered Under Third-Party Funding Funders will usually fund legal fees and dis- bursements. Many funders will fund investiga- tory costs (forensic accountants, etc). Funders may be willing to fund the costs and expenses of an insolvency office-holder. Separate arrangements usually cover risks of adverse costs, through after the event (ATE) insurance. Many funders insist on ATE insurance as a condition of funding but may fund the cost The LPA makes provision for contingency fees for non-contentious business but not expressly for contentious business. The Code of Ethics under the LPA provides that legal practition- ers can enter into a contingency fee agreement “provided that such fee is fair and reasonable”. Legal practitioners may be prepared to act on a contingent basis for litigation in appropriate cases in order to allow for access to justice. No guidance is available as to what is a fair and reasonable fee. 2.7 Time Limit for Obtaining Third-Party Funding There are no specific time limits for obtaining third-party funding. Generally, a party will seek of the upfront premium. 2.6 Contingency Fees
become BVI admitted and obtain a practising certificate. Rights of Audience The BVI generally operates a “fused” profession, although a distinction is made between barris- ters and solicitors for the purposes of appearing before the court. Barristers have full rights of audience in all courts, whereas solicitors have more limited rights. An increasing number of solicitors are solicitor advocates, with the same rights as bar- risters. For high-value commercial cases it is common for parties to instruct King’s Counsel (KCs, senior specialist advocates) from England. A number of English KCs are admitted to practice in the BVI. 2. Litigation Funding 2.1 Third-Party Litigation Funding Litigation funding is permissible as a matter of BVI law so that third parties can fund litiga- tion and other liquidation fees and expenses in appropriate cases and on appropriate terms. 2.2 Third-Party Funding: Lawsuits Please see 2.1 Third-Party Litigation Funding . 2.3 Third-Party Funding for Plaintiff and Defendant Third-party funding is usually available for plain- tiffs, not defendants, except where a defendant has a counterclaim. Most funders will consider funding counterclaims, applying usual under- writing criteria.
198 CHAMBERS.COM
Powered by FlippingBook