The evolution of litigation finance

• Localización: The Lawyer, ISSN-e 0953-7902, Vol. 31, Nº. 2 (1/18/2016), 2016
• Idioma: inglés
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• Resumen

  • Litigation finance is maturing, yet the majority of lawyers and in-house teams remain unaware of its versatility The legal industry is woefully unfamiliar with the wide range of financing solutions off ered by litigation funders, resulting in claimants, defendants and law fi rms tying up more capital and assuming more risk than is necessary during cases. That was the main finding of a survey undertaken by The Lawyer Research Service and Burford Capital late last year.

    For those not in the know, litigation funders now offera variety of finance products to claimants, defendants and the firms representing them, ranging from WIP funding and costs advances to recourse loans and security for costs.

    Contrary to common perception, litigation funders are also happy to provide financing for purposes other than paying a lawyer's fees or other disbursements. In fact, litigants can use their litigation cases as security to secure financing for pretty much any corporate purpose, including international expansion, working capital or research and development, even if it is completely unrelated to litigation. In short, litigation finance has evolved to corporate finance.