How Litigation Finance Can Help Your Court Case During and After COVID-19 Pandemic
Across the country, courthouses have been shuttered, leaving countless trials on hold and pushing legal deadlines to the wayside. The public health crisis has left a crippled U.S. legal system in its wake. Notably, civil court cases are drastically impacted because of the COVID-19 pandemic. While these unprecedented times have led to some solutions, such as remote depositions and virtual meetings, claimants are still facing innumerable trials and tribulations. Here is where the litigation finance industry can step in. Third-party funding offers a solution during these trying times.
Legal Industry Issues
The legal system has been adversely affected as a result of the pandemic. Some of the issues that the industry has encountered include:
- The economy’s financial decline. Not only does the economic downturn affect the legal sector, but it also encompasses virtually every aspect of life, from the broader business ecosystem to employee benefit reductions and lay-offs.
- Increased levels of risk associated with litigation. Even in the best of scenarios, there are still risks linked to litigation. However, in these times, risks are even higher than usual. Clients are more strapped for cash and are desperately seeking relief.
- Delayed court proceedings. Many courts have closed during these extenuating circumstances, with judges calling upon emergency powers to delay trials for a longer period than is typically allowed. This increases the costs for litigation and extends the wait-time before a claimant is granted relief.
- Less incentive to resolve. While we are amid a pandemic, your adversary has an easy excuse to delay, deny, and refuse. Without the looming dates of trial, mediation, or settlement negotiations, you may not be granted relief until after the pandemic ends.
Litigation Finance Mitigates Risk
Despite the harrowing circumstances, litigation finance may be the perfect solution. By its very nature, litigation funding aims to minimize the risk that a claimant takes on. Instead of having a claimant assume all of the financial risks and burdens associated with litigation, the responsibility is shared with a third-party funder. Essentially, the risk is now spread. Some of the other benefits of having a litigation financer by your side include being able to bring a claim, in the first place. At times, claimants do not have the means necessary to bring a complaint to fruition. Litigation financing can help support the costs associated with initial filing.
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Topics: litigation finance, third-party funding, legal funding, COVID-19, pandemic, business, economy