Tag Archive: litigation costs

Small-Scale Litigation Finance Is Not a Threat to Increase Meritless Litigation

One of the many prevalent criticisms of litigation financing is that it will promote more litigation and more unmeritorious litigation.  Those who level this criticism contend that more widely available financing will make it easier for litigants to continue lawsuits…
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Why Litigation Finance Is Not Like Payday Lending

The critics of litigation financing often like to equate making investments in legal claims with issuing “payday” loans.  Through this equation, they contend that litigation financing is an exploitative practice in which uninformed, helpless individuals make unfair bargains with powerful,…
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The Problem of Discovery about Litigation Funding Arrangements

As litigation funding becomes more prevalent, it is subject to increasing scrutiny, including in discovery in cases where one of the litigants receives funding from a third party. When a litigant does obtain litigation funding, that party’s attorney must take…
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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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