Congratulations! THE CASE just walked in the door. You know the one…the one that means your grandchildren will not have to worry about paying for college. The one that will allow you to have both the beach house and ski chalet. The one you’ve been waiting for…BUT how do you manage it? Expert costs, travel, depositions, it may be some time before you see penny one.
Enter your potential new (best?) friend…litigation finance.
According to a recent article in the Wall Street Journal litigation finance is continuing to grow here in the US. For those uninitiated, this type of finance is when investors back pending legal cases in exchange for a cut of the proceeds.
Recently, Burford Capital LLC, one of the more established litigation financiers, released a survey on litigation financing. based on responses from outside counsel, in-house lawyers and corporate financial executives. Corporate leaders are seemingly receptive to the practice, with 50% of financial executives suggesting that law firms explain third-party funding as a payment option at the outset of a case—and there was a widely-held belief that demand for litigation finance will continue to grow.
While the corporate world is viewing this as another form of financing,. there remains uncertainty as to whether those at the Bar will view the practice as violating prohibitions on third-party funding of lawsuits…I will keep you abreast of developments.