Framework
The Recoverability Framework
Recoverability is the likelihood that a legal claim converts into actual recovered value, not merely a favourable judgment. The Recoverability Framework assesses a claim across five dimensions: legal merit, documentation strength, counterparty capacity, enforcement route and commercial proportionality.
Executive Summary
Winning is a legal event; recovering is a financial one. Plenty of decree-holders never see the money. The gap between the two is where claimants lose years and capital.
The framework forces the financial question first: even if you win, can and will the counterparty pay, and does the route to making them pay cost less than it returns? Only claims that clear that test deserve further capital.
The five dimensions
- 1
Legal merit
The strength of the claim in law: cause of action, defences, limitation and forum posture.
- 2
Documentation strength
Contracts, invoices, correspondence, admissions, graded, with gaps identified.
- 3
Counterparty capacity
Ability and willingness to pay: solvency, assets, encumbrances, insolvency signals.
- 4
Enforcement route
The practical path from judgment or award to money: execution, attachment, jurisdictions.
- 5
Commercial proportionality
Expected recovery versus cost, timeline and attention, the investment test.
A winnable claim vs a recoverable claim
| Winnable | Recoverable | |
|---|---|---|
| Question asked | Will a court agree? | Will money arrive? |
| Blind spot | Insolvent or asset-less counterparty | - |
| End point | Judgment or award | Cash, assets or settlement value |
| Decision it supports | File or not | Invest or not |
Quick recoverability self-check
- Can you state the legal basis of the claim in two sentences?
- Do documents, not memories, prove the key facts?
- Does the counterparty have assets or income you can point to?
- Is there a realistic route to enforce against those assets?
- Would you invest your own money in this claim at its expected cost and timeline?
Frequently asked questions
How is recoverability different from case merit? ▾
Merit asks whether you should win. Recoverability asks whether winning will produce money, factoring in the counterparty's capacity to pay and the enforcement route.
How is the framework applied to my claim? ▾
Through the Legal Asset Eligibility Assessment: your inputs are evaluated across the five dimensions to produce a preliminary indication, followed by detailed diligence for eligible claims.
Can a strong case score low on recoverability? ▾
Yes, most commonly when the counterparty is insolvent, assets are hidden or offshore, or the cost of enforcement is disproportionate to the claim.
Does a high recoverability indication guarantee funding? ▾
No. It is a preliminary assessment; funding decisions follow full due diligence by the investment committee.
Related Guides
Assess your claim's recoverability
A free, structured, 5-step assessment of whether your claim may qualify for funding. Preliminary indication only, subject to due diligence.
Run the Assessment