Litigation Finance and Case Monitoring
On this platform we talk a lot about trends in litigation finance, and sometimes how we determine what cases to invest in, and even the economics of litigation finance. But this blog post is devoted to what happens after a litigation finance company decides to fund your case.
As we’ve mentioned before, to help the case run smoothly and abide by all rules, regulations, guidelines, and ethics concerns when a litigation finance company agrees to fund your claim they should not be directly involved in litigation. The claimant has attorneys for a reason and they are the ones fighting the battle in court or during settlement negotiations or during a hearing. However, once I litigation finance company has agreed to invest in the case they now have a special interest in how the case comes out. Therefore, litigation finance companies most often will monitor any cases they are involved in.
Not only does case monitoring allow the funder to know how the case is going and whether or not they are likely to receive payment on their investment. Monitoring also allows the financier an opportunity to be passively involved and create relationships both between the financier and the claimant as well as the financier and the attorney or law firm.
Monitoring a case may look different for every litigation finance company but it will often involve receiving docket notices and reviewing pertinent filings. It may also include tracking court deadlines so the funding team knows what the attorneys and court are doing at different times.
It is also likely that the funding team will track the legal spending of the money. Particularly when capital is provided early on it can be helpful to see what money is being spent as what stage of the proceeding. As that is the litigation finance company’s investment it is important to know how it is being managed.
Beyond these things, some litigation finance companies may offer advice or more practical help to the lawyer or team of lawyers without of course being directly involved in the proceeding. It may also depend case by case how much the funding team is involved. If you would like to know more about how TownCenter Partners specifically monitors our cases please feel free to reach out to our team.
Topics: litigation finance, alternative litigation finance, third party funding, case monitoring
Works Cited: Christopher Catalano, After We Say “Yes:” How Case Monitoring Works, Burford Capital (May 1, 2018).
