FAQ for law firms: How litigation funding through Erbfinanz works
What exactly does litigation funding mean?
What exactly does litigation funding mean?
Litigation financing means that we as Erbfinanz assume all the costs of your client's legal dispute, i.e. both the out-of-court and in-court legal and court costs as well as any expert witness or expert fees that may be incurred. In return, we only receive a percentage success fee agreed in advance with your client in the event of success; in the event of losing the case in court, we assume all the costs of the legal dispute.
I have a client who is interested in litigation funding. What are the next steps?
I have a client who is interested in litigation funding. What are the next steps?
Get in touch with us. You will then be given access to our portal, where you can upload important documents such as your will or an estate register. If you have any technical problems, please contact kontakt@erbfinanz.de and a member of staff will get in touch with you.
We then review the case and - after a positive review - send your client our litigation funding agreement. A contractual relationship exists exclusively between us and your client and between you and your client. Once your client has signed our compulsory portion settlement agreement and the cancellation period has expired, we will inform you of this and you can start working on the case. You send your invoice to your client as usual, but upload it to our portal and we will settle it.
We pay the business fee in accordance with the RVG after your first action. We pay the procedural fee in accordance with the RVG after filing the action. We pay the appointment fee in accordance with the RVG upon conclusion of the proceedings, i.e. in the event of a court victory or, in the case of a settlement, as soon as the heirs have settled the claim to the compulsory portion; in the event of a court defeat, when the judgement becomes final. In the event of a settlement, we also pay the settlement fee in accordance with the RVG upon conclusion of the proceedings.
Who is the plaintiff in the context of litigation funding?
Who is the plaintiff in the context of litigation funding?
Your client remains the authorised plaintiff - we do not appear externally in the proceedings. We merely provide the financial means for contesting the legal dispute, i.e. in particular court and lawyer's fees in accordance with the RVG, and also bear these costs in the event of losing the case in court, i.e. we do not take recourse.
How does invoicing work?
How does invoicing work?
You send your invoice to your client as usual and upload it to our portal. We pay this as a service on a third-party debt for your client. We pay the business fee in accordance with the RVG after your first action. We pay the procedural fee in accordance with the RVG after you have filed the claim.
We pay the appointment fee in accordance with the RVG at the end of the proceedings, i.e. in the event of a court victory or, in the case of a settlement, as soon as the heirs have settled the claim to the compulsory portion, and in the event of a defeat when the judgement becomes final. In the event of a settlement, we also pay the settlement fee in accordance with the RVG upon conclusion of the proceedings.
Will Erbfinanz be involved in the communication with my client?
Will Erbfinanz be involved in the communication with my client?
No, you continue to communicate with your client in a confidential atmosphere. You only upload all written submissions from you and the other party as well as letters from the court to our portal.
What procedural steps do I need to inform Erbfinanz about?
What procedural steps do I need to inform Erbfinanz about?
You must inform us of the following procedural steps: Filing of the lawsuit; all pleadings from you, the opposing party and court letters; commencement of settlement negotiations; settlements and judgements.
How do I communicate with Erbfinanz?
How do I communicate with Erbfinanz?
We have developed our own portal where you can submit cases for review and upload case documents at any time. You can also contact us by telephone on +49 89 541 975 97 or by e-mail at kontakt@erbfinanz.de or book a consultation appointment here.
Who do I contact if I have technical problems or other questions?
Who do I contact if I have technical problems or other questions?
You can contact us by telephone on +49 89 541 975 97 or by e-mail at kontakt@erbfinanz.de or book a consultation appointment here.
What costs are covered by Erbfinanz?
What costs are covered by Erbfinanz?
All legal fees based on the RVG, all court costs and other costs of the proceedings are covered.
As a lawyer, do I enter into a contract with Erbfinanz?
As a lawyer, do I enter into a contract with Erbfinanz?
No, a contractual relationship exists only between us and your client and between you and your client.
When will my invoices be paid?
When will my invoices be paid?
We pay the business fee in accordance with the RVG after your first action. We will pay the procedural fee in accordance with the RVG after the action has been filed. We pay the appointment fee in accordance with the RVG at the end of the proceedings, i.e. in the event of a court victory or, in the case of a settlement, as soon as the heirs have settled the claim to the compulsory portion, and in the event of a defeat when the judgement becomes final. In the event of a settlement, we will also pay the settlement fee in accordance with the RVG upon conclusion of the proceedings. We will pay the court costs when they fall due.
Do I have any contractual obligations or costs as a result of a compulsory portion settlement by Erbfinanz?
Do I have any contractual obligations or costs as a result of a compulsory portion settlement by Erbfinanz?
No, by cooperating with Erbfinanz you do not enter into any obligations and you do not incur any costs as a result of our compulsory portion processing.
What information and documents do I need to provide to Erbfinanz for the case review?
What information and documents do I need to provide to Erbfinanz for the case review?
You will find all the information and documents we need for the case review in our portal. It is the same information that you request from your client anyway (e.g. claimant, defendant, testator, date of inheritance, family relationship, estimated value of the estate).
How does commission settlement work?
How does commission settlement work?
If the proceedings are concluded by settlement or court victory, we will prepare a commission statement for your client.
What acceptance criteria must a case fulfil?
What acceptance criteria must a case fulfil?
In principle, the estimated compulsory portion after deduction of lifetime gifts to your client must be at least 10,000 euros. The claim to a compulsory portion must not be time-barred. Your client must not have declared a notarised waiver of the compulsory portion. Your client must not be unworthy of inheritance within the meaning of Section 2333 BGB.
What is the minimum amount of the estimated compulsory portion?
What is the minimum amount of the estimated compulsory portion?
In principle, the estimated compulsory portion after deduction of lifetime gifts to your client must be at least 10,000 euros.
What is the maximum amount of the estimated compulsory portion?
What is the maximum amount of the estimated compulsory portion?
There is no maximum limit.
Can I simply register as a co-operation law firm?
Can I simply register as a co-operation law firm?
No, to register as a co-operation law firm you need a registration code, which you will receive after we have checked it. If you are interested in a co-operation, you can contact us by telephone on +49 89 541 975 97 or by e-mail at kontakt@erbfinanz.de or book a consultation appointment here.
The inheritance also includes property and/or companies outside Deutschland - is this a problem?
The inheritance also includes property and/or companies outside Deutschland - is this a problem?
In principle, only a German place of jurisdiction is required - real estate and/or companies that are part of the estate may also be located outside Deutschland.
Does Erbfinanz have to agree to the conclusion of a settlement?
Does Erbfinanz have to agree to the conclusion of a settlement?
No, your client decides at his own discretion whether to accept or reject a settlement proposal from the other party.
How high is the commission in the event of success?
How high is the commission in the event of success?
Our commission depends on the complexity of the case and the risk involved. We will be happy to inform you of the commission amount after an initial consultation.
At what stage does Erbfinanz finance proceedings?
At what stage does Erbfinanz finance proceedings?
We take over and finance procedures both directly after the initial consultation and after the information has been provided.
Does Erbfinanz also refer enquiries from potential clients to its partner law firms?
Does Erbfinanz also refer enquiries from potential clients to its partner law firms?
Of course, if we receive enquiries from potential clients as a result of our advertising activities, we will forward them to one of our cooperating law firms located in the client's vicinity. There is expressly no obligation to accept such enquiries - the cooperating law firm is entitled to reject enquiries at any time at its own discretion.
Can I advertise my cooperation with Erbfinanz, e.g. on my website?
Can I advertise my cooperation with Erbfinanz, e.g. on my website?
Of course - if you would like to draw attention to your co-operation with us, you are also welcome to use our logo.
What advantages does Erbfinanz offer as a specialised process financier?
What advantages does Erbfinanz offer as a specialised process financier?
As a specialist, we can offer you the following advantages: You will receive a 1.0 RVG fee for the additional work involved, provided you have agreed this with your client. Streamlined processes so that you can concentrate on your client work. We also take on out-of-court proceedings. Fast financing decision - you will receive our financing decision within just five working days. Financing from as little as 30,000 euros and with no upper limit. No costs or obligations for co-operating law firms.
Will my additional expenses due to the involvement of Erbfinanz be compensated?
Will my additional expenses due to the involvement of Erbfinanz be compensated?
We will reimburse you a one-off 1.0 fee in accordance with the RVG based on the amount in dispute for the additional costs incurred by involving Erbfinanz. We will reimburse this „Erbfinanz fee“ at the end of the proceedings.
