Going to court is expensive. This applies to even the biggest businesses in the world. Resolving a legal grievance, dispute or discrimination costs money, and it can be very time-consuming.
Legal procedures are lengthy and some cases can stretch out as long as five years. In this time, firms have to bear the mental strains involved, as well as the financial expenditures.
So, if going to court is such a pricey endeavour, what happens? Should firms just lie down and not pursue justice?
If one does not have the funds to take a case on, there is a viable route which can help. This is called litigation funding.
What is it?
Litigation funding involves a third party providing all the financial support that you need. Working alongside the lawyers, the funder pays all the legal costs and no upfront payment is required.
It sounds too good to be true but it really is correct; a third party funding provider offers the business the financial backing that they need, in exchange for a return of investment, as well as their initial investment back.
During the past half a century, legal restrictions to a third party getting involved in a legal dispute have been worn down, and litigation funding has increased in popularity.
What if the case fails?
In life nothing is certain and not all claims succeed. There is a risk that a case can fail, and that is why funders have an extensive procedure that they consider, before agreeing to fund a case.
There are a lot of risks involved for the funder; the business doesn’t have to pay a penny, even if the case fails; whereas the funder still has to pay the fees if the case flops, as well as the defendant’s fees.
So as a result, litigation funding providers are very meticulous with the cases they take on. They reject more than 50% of the case requests they receive, simply because they cannot take a case on board unless it has a strong defence, and is risk-free.
What does this mean for you?
Third party litigation funding is a worthwhile solution to finding the funds to go to court. Commercial litigation disputes are only increasing around the globe, so if you need financial assistance to bring a case to court, this is a very feasible path to pursue.
This article was written by Lauren Grice on behalf of Vannin Capital, the specialists in third party litigation funding. Visit litigationfunding.com today to seek expert help and advice, and to see if it is right for you.