Advantages of litigation funding

[vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css_animation=””][vc_column][vc_column_text]Third-party funding has gained traction over the past few years and such use of litigation funding is expanding rapidly across the legal world in continental Europe, Latin America, various offshore jurisdictions and, importantly, Asia. In other words, demand for commercial financing for litigation, arbitration and insolvency cases is growing steadily across jurisdictions in Asia. Moreover, such third-party funding provides a much needed source of funding and create access to justice for many claimants/respondents who would otherwise have no means to engage in protracted dispute resolution proceedings.

In addition, a growing number of claimants have begun to use litigation funding to finance their legal disputes. For many organisations, such is the complexity and resource intensity of bringing a large-scale claim whereas litigation finance is the only viable method by which they can obtain access to justice. Even if their claim has merit, often no other source of funding is appropriate or available. Furthermore, large corporates with relatively deep pockets are increasingly seeing the risk-sharing and accounting advantages of third-party litigation funding.

Hence, lack of liquidity is no longer the only driver of a decision to seek third party funding as corporates are now able to engage third party funders for reasons of convenience, cost effectiveness and risk sharing which allows a well-resourced companies to hedge its legal costs/risk.

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