Have you ever been involved in a legal dispute? If so, you will be aware that the costs of litigation add up very quickly, which is where litigation funding can play its part. Litigation funding is a way to finance a legal case so you don’t have to pay all the expenses up front.

The basics

Litigation funding is a way to fund the costs of your legal case by way of a third party, which is typically a specialist funding company. A London law firm, such as www.forsters.co.uk/, can help set up litigation funding in certain cases.

With litigation funding, this specialist company will agree to cover some or even all of the legal costs of your case. In return, they will be awarded a predefined share of the money you recover if you win your case. Should you lose, the funder will usually absorb the cost, which will relieve the financial pressure of your case.

Who can use it?

Litigation funding is most often used in disputes such as group actions, commercial disputes, or cases where the damages are potentially large enough to attract investors; however, it is becoming more widely used and known in other areas of law.

For individuals, there are also options such as no-win, no-fee agreements or legal aid. These can help improve access to justice without risking crippling legal bills.

Why it matters

Litigation funding matters because it opens the door for people and businesses that may otherwise be priced out of pursuing a legitimate case or legal claim, helping to level the playing field.