62 THE ADVOCATE
VOL. 76 PART 1 JANUARY 2018
(coaching and training to clients); and court appearances (including
hearings or mediation sessions).
2. Third-party litigation funding offers an opportunity for clients,
lawyers and law firms to obtain funding from private and public
third-party sources to pay for litigation. Private funding involves a
third-party funder entering into a litigation funding agreement
with a plaintiff, lawyer or law firm to finance legal fees and disbursements.
The funder has no legal right or interest in the matters
at issue in the litigation but participates as financier in
exchange for a share or percentage of the settlement or judgment.
Examples include contingency fee agreements, litigation loans and
adverse cost insurance. Public funding is collected and distributed
to litigants through statutory mechanisms. Examples include
provincial class proceedings funds, legal aid plans and workers’
compensation advocacy services.
3. Alternative fee arrangements are generally described as an alternative
method for clients to pay for legal services, which may or
may not include a modified hourly billing model. Examples
include blended rates, fixed or flat fees, capped fees and task-based
4. Crowdfunding is used to fund litigation through online funding
portals. Funding can be provided as a donation, to offer financial
support for a case without the expectation of a financial or other
reward. Funding can also be provided as an investment in
exchange for a portion of a settlement or judgment.
5. Legal expense insurance offers coverage for legal services.
Depending on the policy, individuals pay an annual insurance premium
to an insurance provider in exchange for legal information,
advice and representation. Typically, legal expense insurance falls
under two categories: (1) before-the-event insurance (insurance
against potential litigation and other legal issues that can arise following
a hypothetical future event) and (2) after-the-event insurance
(insurance purchased after litigation has commenced as
protection against all or part of the risk of paying an adverse cost
6. Publicly funded litigation funds are self-sustained and offer litigants
access to ongoing and continuous funds to pay the cost of litigation.
They allocate federal and provincial funding to both
individuals and groups of litigants.