The pros and cons of lawsuit funding

Understanding the benefits and drawbacks of Litigation Funding

Filing a lawsuit can be an expensive and time-consuming endeavor. The average lawsuit lasts between one to two years. Asides from mounting attorneys fees, litigation also often involves costs in order to move the case forward.

The best way to pay for those costs is litigation finance.

Although commonly misunderstood as a loan, litigation finance is actually a non-recourse investment into a lawsuit (similar to a contingency arrangement), and any repayment only comes out of the winnings of the court case. In situations where attorneys are not able to take cases on contingency, litigation finance acts as a bridge in which the plaintiff gets a contingency arrangement from a firm like Legalist.

In today's legal marketplace, cases are often settled early and for too little, simply because the plaintiff lacks the resources to continue fighting. While getting litigation finance often means that you will give up more of your case than you would if you self-funded, it also helps to give you the warchest you need to win your case.