Collegiate recovery is an extension of our after-the-event insurance business in which Collegiate has been engaged since the introduction of the Access to Justice Legislation of 1996.

The problem

• A firm may be involved in a major dispute with its clients, suppliers, landlords
• A firm's competitor may try to steal its employees or its business
• An insurer may have un justly turned down a claim which should have been paid.
• Such a firm is unlikely to have purchased legal fees insurance or even if they have, the sums insured may be inadequate or on examination the policy may exclude the type of dispute with which they are involved.
• The firm may not know the right lawyer to go to.
• The firm may be worried, as may its bank or other creditors if and when the firm will see its money and what a contested litigation might do to the firm if the claim is unsuccessful.

Collegiate has agreed with a rapidly expanding London firm of Solicitors to offer a service whereby:

An eligible claim will be initially vetted free of charge. The client will be advised if the lawyer and counsel are prepared to take the case on a conditional fee basis (CFA), that is the lawyer will only be paid is a successful recovery is made.

If so, a policy of insurance will be arranged to cover the risk of the opponent's legal costs, the premium will also be conditional on the firm making a recovery from the opponent.

In general terms a case will be eligible for consideration if:

• The claim value is substantial i.e. around £100,000
• The clients claim is supported by documentary evidence, not just oral testimony
• The defendant has sufficient assets to satisfy a judgment with an order for payment of legal costs

If for any reason, the lawyers feel that the case is one which should be pursued but is not suitable for a CFA, we can insure the lawyer's fees which would be deferred to the end of the case. The firm would buy tranches of cover as the case proceeds. The cover purchased would remove the firm's exposure to legal costs. The premium itself would be insured, reducing the exposure even further.

The advantage is that both the lawyer's fees and the insurance premium in most cases should be recoverable from the unsuccessful defendant, leaving the firm with their losses fully recompensed.

For cases introduced by an insurance broker all discussions would be handled by Collegiate and if the lawyers agree to take the case and are instructed, an introductory fee of £250 will be paid up front.

A further introductory commission of 2.5% of the insurance premium will be paid the broker on the successful, conclusion of the case.

To view details of the insurance coverage and the proposal form click on the buttons at the top right of this page.

If you have a prospective claim you think may be eligible for the scheme please contact: