Restitution Ltd celebrates 10 year anniversary
Restitution Ltd, an independent provider of third party commercial funding in Scotland, has marked its tenth anniversary by highlighting the evolution of its business model.
The firm has carved out a niche in the marketplace and over the past ten years has worked with law firms and their clients on claims with damages ranging from tens of thousands right up to multimillion-pound claims.
Restitution Ltd has said that the need for commercial third party funding in Scotland has grown considerably in the last 10 years. The number of cases reaching court are reported to be around 10,000 less than 10 years ago.
At the same time, the economic impact of coronavirus and the attack on Ukraine will be far-reaching - one of the specific consequences is a likely rise in the number of legal disputes resulting from the disruption to businesses and individuals
Restitution offers commercial, insolvency litigation, mediation, arbitration and adjudication funding. Since being formed in 2012, the company has gone from strength to strength within the dispute resolution funding market and has become much busier in recent years as the market has matured and welcomed the value of its offering.
Frances Sim WS, general counsel for Restitution Ltd, said: “If a claim is meritorious, with strong prospects of success and a good route to recovery from the defender then we will offer funding. We don’t operate a target driven approach and this works as a business model as we are relatively small and thus only fund cases we believe in.
“The number of cases reaching court are reported to be around 10,000 less than they were when our business was founded. There are many reasons for that, including the very welcome increase in alternative routes including mediation and arbitration. However, even with these alternative processes in place, securing the finance required to pursue a dispute through legal means – including concerns about the possible adverse award of expenses - remains a huge challenge and that’s where we can assist.
“Third party funding can also provide another means of helping provide access to justice. Third party funders invest in existing or prospective cases – often those which might otherwise not be able to be pursued – to enable their clients to progress their dispute. While this form of support was traditionally suited to larger and more complex claims, its model has changed in recent years. It is now geared for a wider range of claims and is more accessible.
“The economic impact of coronavirus and the attack on Ukraine will be far-reaching and affect businesses across multiple sectors on many different levels. One of the specific consequences is a likely rise in the number of legal disputes resulting from the disruption to businesses and individuals.”
Examples of Restitution funded cases include a case involving a Scottish businesswoman who received a substantial settlement after being systematically excluded from the family business in which she was a director.
Without funding the other shareholder’s unjust and underhand behaviour would have gone unchallenged. Another case saw Restitution provide backing for a property developer who fought proceedings brought by a major Scottish bank.
One of the major investment funders working with Restitution is well known Scottish business owner Donald Houston.
He said: “Having been told some years ago by a very senior judge that “there is no such thing as justice – only the law – and access to the law is not affordable to most” and, having been in that position myself some years ago, I looked at a way of trying to mitigate this unfortunate reality of the system we find ourselves in.
“Being able to help genuine cases have a fair hearing and access to justice is extremely rewarding. I, along with others, provide funding for claims that present a good strong case, be it someone who genuinely can’t afford the fees, it might be a distressed situation or one with a balance of equity, so one with good prospects to success will merit a case and a root to recovery.
“It would be great if every genuine case could be heard but at least third party funding is making inroads and helping many cases gain justice.”