What are the benefits of Litigation Funding?

The benefits of litigation funding are numerous. Litigation funding transactions are typically non-recourse, meaning that if there is no recovery made from the dispute, then there is no obligation to repay the funder its advances or to pay any return on its investment. It is the non-recourse nature of these arrangements that provides ‘David’ claimants with access to justice against ’Goliath’ respondents. If these claimants had to bear the economic burden of enforcing their rights, they would simply not have their day in court against well-resourced respondents.

Moreover, when Goliath realises that David has a heavily capitalised funder supporting his cause, it often strengthens David’s bargaining power, and can change the tone and content of settlement discussions in the claimants’ favour dramatically.

However, litigation funding is no longer merely a lifeline for those claimants for whom funding is a financial necessity. Non-recourse funding to pay the costs of dispute resolution also benefits those claimants who have ample resources, but simply do not have the risk appetite, or cash flow, to invest in a long drawn out litigation or arbitration.

Another benefit of litigation funding is that it provides an additional assessment of the claims at no cost. A ’reality check’ at a developmental stage of the dispute can greatly enhance the strategy of the case. Funders like Woodsford, which have a staff of legal provide an extra layer of valuable diligence expertise.

Finally, for claimants that have yet to engage a law firm or may need to add local or specialised counsel, a well-established funder with a deep network of legal practitioners, such as Woodsford, can make introductions to a law firm best-suited to represent the claimant in the jurisdiction at issue.

Woodsford is a founder member of both the International Legal Finance Association and the Association of Litigation Funders.

Woodsford Litigation Our people

Our People

Our team offers a unique blend of legal and financial expertise. We use our own in-house legal capability and deploy our own funds, rather than relying on external advice or capital.

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About woodsford

About Woodsford

We are experts in delivering tailored financial solutions to meet the specialist needs of law firms and their clients involved in litigation and arbitration across the globe.

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Downloads

Downloads

Keep ahead of the latest thinking in litigation and arbitration funding with our series of papers and comment pieces, as well as brochures, product sheets and case studies which can be downloaded as PDFs.

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