In a class action, there are often significantly large costs, especially associated with obtaining expensive experts and experienced counsel. By acting together, multiple members of the class make the claim viable by achieving favourable economies of scale.
Litigation Funder Bannister Law will likely be using a litigation funder for the Dick Smith Holdings Limited (ASX:DSH) (In Receivership) class action in Australia. Under this arrangement the funder will pay for all costs and expenses, including legal fees and disbursements.
The funder also accepts the risks associated with litigation. In the event our claims for compensation fail, you will not be liable for any expense or potential costs imposed by the court.
In return for accepting this risk, the funder is charging 25% of any settlement or judgement of the amount obtained within 2 years of the commencement of the case.
Legal fees are charged for work that our professional lawyers and support staff do for you throughout your claim. That may include writing letters, making or taking telephone calls, preparing documents, negotiating and so on.
Disbursements are fees charged by third parties which are required to properly prepare your claim. These may include expert reports, testing experts, Barristers, other experts, and so on.