What are the advantages of litigation finance as compared to funding my own case?
The obvious advantage of litigation finance is to transform the bargaining power of claimants against better-resourced defendants. Funders help provide those taking action against large companies with the resources needed to fight a protracted legal battle. Increasingly, it is now about equalizing resources. Claimants who have the ability to self-fund benefit from sharing the cost risk of the litigation and having an expert investor confirm that the case is financially viable. Additionally, the funded claimant benefits from the experience of the funder in funding other cases (a ‘second set of eyes’ with expertise in litigation reviewing the merits of the case) which ensure best practice is followed in managing the litigation process. Lastly, the funder can be providing a financial hedge against the outcome of the case which may be in the claimant’s best interests on a risk-adjusted basis.