Litigation | 27 September 2017
Picture the scene. Your trusted external law firm advised that you have a strong claim, likely to yield a significant financial upside for your business. The budget to run the claim is £2m, including adverse costs risk, but subject to possible change. The firm cannot agree to a fixed fee. They also advise that your business might be in breach of its fiduciary obligations to its customers if it does not pursue the claim. You take the proposal to the chief financial officer (CFO) and you know their two key questions will be: ‘Can you guarantee we will win?’ and ‘Can you guarantee we won’t exceed that budget?’ And you know the answers are ‘No’ and ‘No’.