Legal & Dispute Resolution

Legal matters and disputes often involve funds that need to be held while rights, liabilities or outcomes are still being determined. This can arise in litigation, arbitration, settlement negotiations or transactional matters with post-completion obligations. At these stages, trust between parties is often limited, even where advisers are experienced and acting properly.

At the same time, professional rules restrict how and when lawyers may hold client money. In many cases, funds cannot be retained in a solicitor’s client account beyond a narrow connection to active legal services, and barristers are prohibited from holding client money at all. This can leave a gap between what the parties need commercially and what legal professionals are permitted to do.

Escrow accounts and third-party managed payment accounts are used to bridge this gap. They provide an independent mechanism for holding and administering funds without compromising professional obligations or requiring one party’s advisers to take on inappropriate risk.

Payment risk in legal and dispute resolution contexts often arises from timing and uncertainty. Settlement funds may be agreed in principle but subject to court approval, regulatory consent or the fulfilment of conditions that take time to resolve. Holding funds safely during this period can be challenging without a neutral structure.

There is also risk where funds are intended to satisfy future obligations, such as damages, costs, security for expenses or undertakings. If money is paid directly to a counterparty too early, recovering it later may require further proceedings, adding cost and delay to an already complex process.

In cross-border disputes, enforcement risk becomes more pronounced. Even where an award or judgment is clear, the practical ability to enforce it can depend heavily on where assets and funds are located. Structuring payments in advance can materially reduce this uncertainty.

Escrow is commonly used to hold settlement sums pending the satisfaction of agreed conditions, such as the execution of settlement agreements, discontinuance of proceedings or approval by a court or tribunal. This allows matters to progress without requiring immediate trust between the parties.

Escrow is also used to provide security for obligations arising out of disputes. Examples include security for costs, security for expenses or funds held to back undertakings or interim arrangements. By placing cash into escrow, parties can provide tangible assurance without relying on insurance or guarantees.

In some cases, escrow is used to hold disputed funds while liability is determined. This ensures that money remains preserved and available for the eventual winner, reducing the incentive for tactical delay or asset dissipation.

Third-party managed payment accounts are used where the emphasis is on administering payments rather than holding funds against conditions. In legal contexts, this includes managing distributions of settlement proceeds, damages or compensation to multiple parties.

These accounts are particularly useful in large or complex disputes, such as group actions or multi-party settlements, where funds need to be allocated to lawyers, experts and claimants in accordance with agreed schedules. Using an independent payment account reduces administrative risk and improves transparency.

Managed payment accounts can also support ongoing legal matters where regular payments are required, for example to fund litigation expenses or expert costs. By segregating these funds from any party’s own accounts, the arrangement provides clarity, oversight and continuity throughout the life of the dispute.

Pricing depends on the structure, value and duration of the arrangements. There is no single fixed fee, as projects and payment flows vary.

Pricing usually reflects three main elements. First, the work involved in setting up the arrangements, including compliance, onboarding and preparation of the account documentation. Second, the ongoing administration of the account while funds are held. Third, the handling of payments or releases during the life of the project.

What pricing covers is the independent holding of funds, administration of agreed payment mechanics, record-keeping, reporting, all bank fees and support throughout the project. It does not cover legal advice, contract administration or dispute resolution, which remain the responsibility of the parties and their advisors.

If something goes wrong, the account agreement provides a clear framework for dealing with it.

If there is a mistake, delay or disagreement about instructions, funds remain safely held in escrow while the issue is addressed. We follow the process set out in the account agreements and do not release funds unless and until the agreed conditions are met.

If a party has a concern about how the account is being operated, we have a formal complaints process. This allows issues to be raised, reviewed and resolved in a structured way, with escalation routes available if needed.

We are a specialist provider focused on escrow and managed payment arrangements. Escrow is not an add-on to another service. It is a core part of what we do.

Funds are held securely and separately, with infrastructure designed specifically for escrow rather than adapted from other uses. Account opening is handled efficiently, and arrangements are administered through a dedicated digital escrow and payments portal, giving authorised parties visibility and a clear audit trail.

Advisors often recommend dospay because we sit independently of the transaction, operate within a regulated framework, have a proven track record and focus on doing one thing well: Holding and administering escrow funds in a clear, neutral and predictable way.