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Break the deadlock with litigation insurance for shareholder disputes

Litigation Insurance can be used for shareholder disputes. Clients may be concerned about acts by majority shareholders which they perceive to be prejudicial to their interests in the value of their shares in the business. Common areas of dispute include deadlock situations, exclusion from management, abuse of power, lack of effort and misuse or misappropriation of company assets.

We have considerable experience and expertise in shareholder disputes and partner with a number of leading litigators across the country.
Our products can enable claims to proceed which might not previously have gone ahead and provide access to justice for a wider range of commercial clients.

Shareholder dispute case types include

  • Section 994 Petitions
  • Just and equitable winding up
  • Derivative actions
  • Contract Disputes

The Temple Advantage

Our experience of shareholder disputes is considerable and our reputation for excellent service is second-to-none. The products we offer reflect our commitment to listening to our clients and providing effective insurance to enable your clients to pursue good claims knowing we are carrying the risk that if they are unsuccessful, we will pay the other side’s costs and their own disbursements.

  • Litigation insurance for shareholder disputes is available to claimants and defendants alike
  • Both Damages and non-Damages claims can be insured
  • No upfront cost of obtaining litigation insurance – and also we do not charge an assessment fee
  • Payment of the premium is deferred until the conclusion of the case and is contingent on a successful outcome.
  • Insured clients will have access to disbursement funding from Temple Funding, a subsidiary of Temple Legal Protection. This can be used to fund, without risk to your client, the court issue fee, expert reports and mediation.

Getting the timing right

The litigation insurance policy is purchased after a legal dispute arises.
The best time to send a case to us is as soon as you are reasonably able to assess the merits of the claim. Usually, this is after your investigation and the pre-action correspondence has been completed, and before proceedings are issued. However, cases can be referred to us at any stage.

Your questions answered

How does Litigation Insurance for shareholder disputes work?

Traditional legal expenses insurance is often known as Before-The-Event or ‘BTE’ cover. Litigation insurance for shareholder disputes used by solicitors is commonly known as After-The-Event or ATE insurance. The latter is the technically correct term but your clients may better understand ‘litigation insurance’. Whichever terminology you prefer, is a bespoke policy put in place with the specific objective of protecting your client from having to pay the opponent’s costs and their own disbursements if their shareholder dispute is unsuccessful.

Is it true that litigation insurance and disbursement funding are only available with a Conditional Fee Agreement.

No. Our products and services are available regardless of the type of retainer you have with your client.

Do you want to see an expert report dealing with share valuation at the outset?

Ideally we would see a copy of an expert report at the outset, but it is not a prerequisite for a proposal to be made. There are many cases we review where an expert report is not available early on in the case, and it will be produced later.

Do you want counsel’s opinion?

Not at the outset. It is always helpful to see counsel’s opinion if it’s available but not essential. Ideally, we would like a case summary from you – to include the background facts of the case, your assessment of the strengths and weaknesses of the case, how any weaknesses might be overcome, and your overall view of the merits.

Contact our experts

If you would like more information on our litigation insurance and disbursement funding products for shareholder disputes, or you have any other legal expenses insurance query, please email or call me on 01483 514428. We look forward to hearing from you.

Matthew Pascall

Legal Director – Head of Commercial

Matthew Pascall

Matthew was called to the Bar in 1984 and joined Guildford Chambers two years later. Spending more than 30 years in practice there, he was listed as a Legal 500 Tier One barrister.

He joined the commercial team at Temple Legal Protection as Senior Underwriting Manager in 2017.

Matthew was appointed to Temple’s Board in December 2022 as Legal Director and Head of Commercial.

His knowledge of the commercial legal sector and litigation practice is invaluable to the business and our clients, providing specialist experience to lead the commercial litigation insurance team.