What are the Benefits of Litigation Funding?


08 Jan

 

Court cases specially cases involving claims are often difficult, cost lot money and take a long time to settle. In fact some injury claims involving medical malpractice, defective products or unfair labor practices to name but a few, can take years to settle. 


Obviously not all plaintiffs have the money to pursue their cases to the end.  Lawyers have to be paid, witnesses have to be found and investigations launched. Without the financial resources for these various expenses, plaintiffs have no option but to settle for reduced compensation the defendants offer or stop pursuing the case altogether. They could not spend more money on the cases while their families suffer deprivation. 


These days, plaintiffs without adequate resources can see their cases to the end with the help of litigation funding. This is a scheme where a third party shoulders the litigation expenses in exchange for a percentage of the settlement. The law firm itself can shoulder the expenses of litigation and recoup it after the case is settled. Most often though private individuals and companies provide the funding. 

 

Litigation funding is not really new.  It has been around for a couple of decades actually.  But it is only now that it has become more popular. Its increasing popularity is inevitable.  It is an effective way of ensuring claims are settled in the most satisfactory way and only after issues have been exposed and properly weighed. It provides plaintiffs the chance to get fully compensated for their sufferings and inconvenience. Of course, a portion of their settlement has to go to the payment of the litigation expenses, but it should be well worth it.  They have the chance to pursue their cases to their natural conclusions while not worrying where to get the money for attorney's fees and other necessary expenses. 


Often many people choose not to file claims because of the prohibitive cost of litigation. If the case is complex as in most cases of injury caused by let us say defective products, the lawyers are specialists, possessing high level skill and long experience. The lawyers' fees can be rather high. But with litigation funding there is no longer any reason for people who suffered from the hands of others to keep silent. Their financial circumstances no longer have any impact on the settlement of cases. The introduction of legal financing has seen to that.


View more details here at https://en.wikipedia.org/wiki/Small_business_financing 

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