Litigation funding
What is Litigation Funding?
Litigation funding, also known as legal financing or third-party funding, is a financial arrangement where a third party, typically a litigation finance company, provides financial support to individuals, businesses, or law firms involved in legal disputes.
This support covers the costs associated with litigation, including attorney fees, court expenses, expert witness fees, and other legal costs. In exchange for this funding, the litigation finance company typically receives a share of any settlement or judgment proceeds if the case is successful. Litigation funding plays a crucial role in ensuring that individuals and entities have the financial resources necessary to pursue or defend legal claims, particularly in complex and costly legal matters, such as commercial disputes, personal injury cases, or class-action lawsuits.
What are Other terms for Litigation Funding?
- Litigation Finance
- Third-Party Funding
- Legal Financing
- Litigation Investment
- Contingency Fee Arrangement
- Case Financing
- Lawsuit Funding
- Legal Funding
- Pre-settlement Funding
- After-the-Event Insurance (ATE Insurance)
- Legal Expense Financing
- Commercial Litigation Finance
Why is Litigation Funding Important?
Litigation funding is crucial as it levels the playing field, granting access to justice for those who lack financial resources. By mitigating risk, it encourages meritorious claims, efficient case resolution, and innovation in addressing societal issues.
Plus, it helps balance power dynamics, particularly against well-resourced opponents, ultimately promoting accountability in the legal system while contributing to economic growth through responsible funding practices and regulatory oversight.
