Is Litigation Finance Right for You?

The high costs and complexities of litigation are daunting for even the best of us. In some scenarios, these facets dissuade claimants from pursuing potentially strong cases. At its core, litigation finance is when a third party contributes funds to a claimant. There are no monthly or upfront payments. Instead, the capital is advanced on a non-resource basis. In short, litigation finance firms only get paid if a claimant wins their case. Typically, the third-party financer will receive a portion of any financial recovery gained from the suit. Here are a few things to consider when determining whether litigation financing is right for you and your potential case.

How Third-Party Financing  Can Help You

The addition of third-party financing can benefit you in countless ways. As previously mentioned, it is a means of acquiring additional capital without the looming presence of monthly or upfront payments. In combination with this initial investment, litigation finance can also help you by:

  • Giving you the proper tools. Many larger companies will attempt to drive up legal costs, which a smaller claimant would be unable to keep up with. Litigation finance furnishes a claimant with the funds needed to continue through the litigation process, from endless discovery motions to continued delays.
  • Reducing the risk of early settlement. Third-party funding equips its users with the benefit of time. Claimants no longer have to settle for premature settlements and low-ball offers.
  • Funding access to the best legal talent. Increased funding can be put towards hiring the best possible legal counsel. A top-notch legal counsel can help navigate you through the twists and turns of litigation and help you reach a substantial settlement.

Characteristics of a Recipient of Litigation Financing

Now that we understand litigation finance’s benefits, the next question is whether or not third-party funding is a good match for you and your claim. In general, here are a few things to consider prior to seeking third-party financing:

  • Strong merits. While cases can range from a wide variety of subjects, the claim must always be meritorious. Moreover, there must be a basis in fact and law in which a standard of care was violated, resulting in the claimant’s harm.
  • Defendant’s financial status. The defendant’s financial condition should be examined. Find whether the defendant has the financial means to meet the claim and grant recovery.
  • Credible strategy. Create a game plan that includes where and how an award against your adversary will be enforced.

Just remember, when in doubt, contact Town Center Partners with any questions you may have.

 

Topics: third-party funding, litigation finance, litigation funding

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.