FirstAssist has signed a deal with Morgan Cole making it the first law firm in Wales with delegated authority to provide after the event (ATE) insurance in commercial cases.

The announcement comes as national law firm Morgan Cole warns businesses that they face the likelihood of increased litigation costs with the end of ‘risk free’ and ‘cost free’ litigation following the recent review of civil litigation costs by Lord Justice Jackson.

The report by Lord Jackson recommends the abolition of the recovery of success fees and after the event insurance (ATE) premiums meaning that if the claimant wants to benefit from them then costs will be due, irrespective of outcome. Instead, a contingency fee structure is recommended where the lawyer effectively takes a percentage of the damages awarded.

Lee Fisher, a partner with Morgan Cole comments: "Research proves that even the most risk averse businesses will face a significant dispute at some point in their lifecycle resulting in cost that has the potential to threaten their very existence."

"The logic behind the recommendations by Lord Justice Jackson is clear – if a claimant business wishes to share or transfer part of his risk then it should pay for the privilege of doing so. This has led to a fear that businesses, particularly SMEs, simply will not be willing, or even able, to risk litigation, even where they have a strong claim"

"Although the recommendations are yet to come in to force, some reform is inevitable. The market is already reporting an increase in potential claimants in business disputes that appear to be taking advantage of the current regime while they still have the opportunity to do so. We would urge other businesses which feel they have a claim to look into their options now" 

"At Morgan Cole, we therefore advise clients to actively manage the risk of litigation as opposed to just a decision based on acceptance or elimination of the risk. Indeed, working with FirstAssist, our unique litigation tool, Calculit™, enables clients to manage the level of risk including prospects of success, cost and exposure. Bespoke solutions will then be implemented including conditional fee agreements, after the event insurance, litigation funding and alternative dispute resolution techniques to deliver the agreed strategy."

The Calculit™ approach and risk transfer options are suitable for most types of commercial disputes including contract disputes, intellectual property disputes, breach of warranty claims, partnership and shareholder disputes, property disputes, sale of goods claims, insolvency disputes, professional negligence and disputed insurance claims.

FirstAssist is acknowledged as the leading provider of after the event legal expenses insurance.