Litigation Funding Provides Access to Justice

Litigation funding, also known as third-party funding, provides claimants with a way to pursue valid legal claims without bearing the financial burdens and risks associated with litigation- in other words it gives people greater access to justice.

Originally, litigation funding was a costly option mainly feasible for large-scale cases. However, the market for it has evolved, becoming more accessible and affordable. This accessibility enables businesses and individuals to manage unexpected legal expenses and ensures access to justice even when their resources are tied up elsewhere.

Litigation inherently carries significant risks, deterring many from engaging in costly legal battles. Recent political, and economic changes have further exacerbated these challenges. Consequently, businesses frequently find themselves unable to pursue potentially lucrative claims due to the associated costs and risks.

Benefits Outweigh Costs

However, for many, the benefits of litigation funding outweigh the costs. By securing funding, they can avoid diverting their own resources to uncertain legal matters and alleviate concerns about failed claims. Funders cover various expenses, including legal fees and insurance, operating on a non-recourse basis where the funder assumes the financial risk of an unsuccessful outcome. While litigation funding offers advantages, it comes at a price. It is generally more expensive than traditional corporate borrowing and may not be suitable for businesses with available budget and risk tolerance. Nonetheless, it allows companies and individuals to shift the cost and potentially gain financially from successful outcomes.

However, selecting a third-party funder requires careful consideration. It’s crucial to choose a reputable funder with transparent terms and a compatible approach. A reputable funder will thoroughly assess the strengths and weaknesses of a case and provide clear terms regarding charges and funding sources.

Ultimately, transparency and compatibility are key when partnering with a third-party funder. A transparent and reputable funder ensures clarity regarding costs and funding sources, enhancing confidence in the partnership throughout the legal process.