Benefits of ALF Increasingly Recognized

As information and experience regarding alternative litigation financing (“ALF”) continues to develop, new and increasingly significant benefits to both litigants and the civil justice system are being recognized.

Opponents of ALF have historically argued that use of ALF will result in ethical violations, frivolous litigation, allowing a third party to control the litigation and make decisions, an attorney abandoning his or her own judgment in favor of the ALF company’s judgment, and a waiver of the attorney-client privilege in any given case.  John Beisner, “Issues Paper Concerning Lawyers’ Involvement in Alternative Litigation Financing”, ABA Commission on Ethics 20/20. February 15, 2011. September 7, 2011. http://www.americanbar.org/content/dam/aba/migrated/2011_build/ethics_2020/ comments_on_alternative_litigation_financing_issues_paper.authcheckdam.pdf.

It was recently noted that little evidence exists to support these arguments.  “The Business of Litigation Finance is Booming” (May 30, 2017), https://www.bloomberg.com/news/articles/2017-05-30/the-business-of-litigation-finance-is-booming.

Evidence of the benefits of ALF continues to mount, however.  Proponents of ALF – both plaintiffs and defendants — note that ALF may actually improve the current volume of pending cases by weeding out frivolous litigation that ALF companies deem a bad investment.  Indeed, the American Legal Finance Association recommends that member companies only provide plaintiff funding if the plaintiff has a legitimate claim and is represented by an attorney.  Working Group on Alternative Litigation Finance. “Comments: Working Group on Alternative Litigation Finance, White Paper on Alternative Litigation Finance.” American Bar Association. November 28, 2011. December 15, 2011. http://www.americanbar.org/content/dam/aba/administrative/ethics_2020/20111128-alf_white_paper_comments_all. authcheckdam.pdf.

For further information, please feel free to contact Roni A. Elias, who leads the litigation finance team at TownCenter Partners, LLC, a boutique litigation funding company that funds plaintiffs and plaintiffs’ law firms nationwide.  TownCenter Partners, LLC is a litigation funder with a social mission and continues to level the playing field in litigation. Mr. Elias can be reached at roni@yourtcp.com or (703) 570-5264. © 2018 Roni A. Elias. All rights reserved.

Topics:  Litigation finance, portfolio financing, portfolio funding, third-party funding, alternative litigation finance, state regulation, ALF benefits, ALF data.

As information and experience regarding alternative litigation financing (“ALF”) continues to develop, new and increasingly significant benefits to both litigants and the civil justice system are being recognized.

Opponents of ALF have historically argued that use of ALF will result in ethical violations, frivolous litigation, allowing a third party to control the litigation and make decisions, an attorney abandoning his or her own judgment in favor of the ALF company’s judgment, and a waiver of the attorney-client privilege in any given case.  John Beisner, “Issues Paper Concerning Lawyers’ Involvement in Alternative Litigation Financing”, ABA Commission on Ethics 20/20. February 15, 2011. September 7, 2011. http://www.americanbar.org/content/dam/aba/migrated/2011_build/ethics_2020/ comments_on_alternative_litigation_financing_issues_paper.authcheckdam.pdf.

It was recently noted that little evidence exists to support these arguments.  “The Business of Litigation Finance is Booming” (May 30, 2017), https://www.bloomberg.com/news/articles/2017-05-30/the-business-of-litigation-finance-is-booming.

Evidence of the benefits of ALF continues to mount, however.  Proponents of ALF – both plaintiffs and defendants — note that ALF may actually improve the current volume of pending cases by weeding out frivolous litigation that ALF companies deem a bad investment.  Indeed, the American Legal Finance Association recommends that member companies only provide plaintiff funding if the plaintiff has a legitimate claim and is represented by an attorney.  Working Group on Alternative Litigation Finance. “Comments: Working Group on Alternative Litigation Finance, White Paper on Alternative Litigation Finance.” American Bar Association. November 28, 2011. December 15, 2011. http://www.americanbar.org/content/dam/aba/administrative/ethics_2020/20111128-alf_white_paper_comments_all. authcheckdam.pdf.

For further information, please feel free to contact Roni A. Elias, who leads the litigation finance team at TownCenter Partners, LLC, a boutique litigation funding company that funds plaintiffs and plaintiffs’ law firms nationwide.  TownCenter Partners, LLC is a litigation funder with a social mission and continues to level the playing field in litigation. Mr. Elias can be reached at roni@yourtcp.com or (703) 570-5264. © 2018 Roni A. Elias. All rights reserved.

Topics:  Litigation finance, portfolio financing, portfolio funding, third-party funding, alternative litigation finance, state regulation, ALF benefits, ALF data.

TownCenter Partner Team

TownCenter Partners, LLC lead Asset Manager is Mr. Roni A. Elias. From modest beginnings, and with the help of a hand-picked dream team of professionals we have built one of the most dynamic and fastest growing companies in the country. TownCenter Partners LLC(TCP) is a real estate partner and master-planner providing development, leasing, management, and third party services. The company’s demonstrated ability to apply big ideas in creative and innovative ways has played a defining role in the firm’s success. Yet, TCP's most important insight has been the core understanding that it is not sight lines or site plans, but human activity, that defines a space and creates a place.