Litigation is a very expensive and time-consuming fight. Going to court to resolve a legal grievance, dispute or discrimination case involves money. Lots of it. In most cases, legal procedures are extremely lengthy and can be long-drawn out over a five year period. In that time, a business and company has had to endure the physical and mental strain of the disagreement, as well as the financial implications.
It is a pricey matter for any business, especially when most commercial litigation disputes can cost millions of pounds. So the simple question is; how can one pursue and achieve justice when lawyers and companies do not have the funds to do so?
This is where litigation funding through a third party can help.
Over the past 50 years in the UK, Europe and in other world jurisdictions, legal restrictions to a third party getting involved in another company’s legal dispute have been worn down.
As a result, the litigation funding sector has increased in popularity. It offers companies and businesses a means to an end, and the financial support in an expensive and lengthy claim. Working alongside lawyers, the funder offers the fundamental backing that is much needed by so many firms when undertaking a court case.
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Sound too good to be true?
Most third party litigation companies, in return for investment, require a share of the winnings. As with anything in life, nothing is certain, and not all claims succeed. There is a risk that the case might fail. Therefore the third party firm has to carefully consider the case, before accepting a claim.
Did you know that third party litigation funding companies reject more than 50% of requests that they receive? They simply cannot afford to give investment to risky, weak claims.
And it is for this reason that they only accept cases with good prospects of success, and if they accept your case, a company could be in for a fighting chance.
What else do you need to know?
Well in England, third party funding is still self-regulated. As with other self-regulated industries, the regulations are constantly being debated but it covers safeguards for all clients. There are very stringent guidelines that such companies must abide; for example, they can’t just up and go during a case when things start to get tough.
They must also have adequate funders to provide enough capital to cover adverse costs when claims are not successful.
What does the future hold?
Commercial litigation disputes are increasing across the globe and the costs associated with it are escalating. Third party litigation funding is the solution for future dilemmas and it is an option which deserves much consideration when it comes to finding the funds. Ultimately, they are the backbone to achieve legal justice.
If your law firm has a good case but it needs financial assistance to bring or defend the case to court, third party litigation funding is a viable route to pursue.
This article was written on behalf of Vannin Capital, a specialist litigation funding provider in the UK. The experts offer businesses, law firms and insolvency practitioners a funding solution to the costs of running a court case. See website for more information.