TownCenter Partners Blog

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Litigation Finance 

Third-Party Financing: The Potential Benefits

TownCenter Partner Team

Third-party financing allows for greater access to the justice system by providing resources to those parties who otherwise do not have the means to fund their own lawsuit. Additionally, third-party financing can remedy a long-standing power imbalance favoring defendants.

For example, when an individual plaintiff files a claim against a corporate defendant, financial disparities often act as an obstacle preventing the plaintiff from victory. Third-party financing contributes by putting the litigant on a more financially stable foot.

Additionally, risk adverse individuals could decline to pursue positive expected value claims, and a transfer of a claim from risk-adverse to a risk-neutral party should yield an increase in total claims pursued. Some claim holders can also be unaware that they possess a meritorious legal claim, and third-party financing provides the funders with the incentives to locate and provide information to those unaware claim holders.

Topics: third-party financing

Work Cited: Bruno Deffains & Claudine Desrieux, TO LITIGATE OR NOT TO LITIGATE? THE IMPACTS OF THIRD-PARTY FINANCING, International Review of Law and Economics, (August 2015).

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.