Tag Archive: legal costs

Variations on the Litigation Funding Model

Third-party litigation funding is most commonly understood as a method by which an investor funds all of the litigation costs for a party throughout an entire case in return for a share of the party’s ultimate recovery.  But as litigation…
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Is Litigation Finance Really Such a Contradiction to Established Norms? — Part 2

Those who advocate using economic theory to analyze law argue that economic efficiency is a test for determining when a legal rule makes sense.  Under this analysis, rules that would expressly or effectively prohibit third-party litigation finance do not make…
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Is Litigation Finance Really Such a Contradiction to Established Norms?

Because a third-party litigation financer gains an economic interest in the legal claim belonging to another, the financing transaction can resemble the assignment of a claim. As a general rule, American jurisdictions impose strict rules that limit the ability of…
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Litigation Finance in Family Law

In the United States (and many other countries), divorce lawyers may not receive a contingent fee.  There are powerful reasons for this prohibition.  Significant sums of money may be allocated between the spouses in a divorce judgment or settlement.  If…
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How Litigation Finance Can Help Lawyers and Law Firms

Discussions of the benefits of litigation finance usually focus on why funding from third parties can help clients, but there are significant benefits to lawyers and law firms as well.  At first glance, a lawyer may feel reluctant to work…
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Litigation Finance for Employment Cases

When observers talk about growth areas for litigation funding, they often point to personal injury cases, where the proliferation of funding companies is making it easier for plaintiffs to find help in managing their litigation costs.  And, of course, litigation…
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Beyond Champerty: Why Old Doctrines Aren’t Necessary to Regulate Third-Party Funding

As noted before in this blog, the common law doctrines of champerty and maintenance have long been used to prohibit third parties from financing the legal costs of one of the parties in a litigation matter.  In many situations, the…
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Third-Party Financing and a Victory for the Little Guy

On Good Friday in 2006, a hailstorm across Indiana caused more than a billion dollars in damage and provided an opportunity to show how litigation finance can be an instrument for justice.  When an insurance company violated its duties to…
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More Third-Party Litigation Funding Means Better Third-Party Litigation Funding

In many cases, third-party litigation funders receive a high rate of return for their investment in a plaintiff’s claim.  For many critics, such a high rate of return is seen as proof that there is something unseemly – maybe even…
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Does Third-Party Funding Really Lead to More Frivolous Litigation?

One of the most prevalent arguments against third-party legal financing is that the number of frivolous lawsuits will increase when plaintiffs have access to financial resources that will cover litigation costs.  This argument is based on the idea that a…
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