Litigation Finance is poised to experience a boom in demand as the world tries to recover from COVID-19. Rampant financial uncertainty creates a need for the funding that insures access to justice for those of few means. Funders are well-capitalized, and preparing to sift through cases to find those with the best chances of success. This is all very similar to what the legal world experienced during the 2008 financial crisis.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
Litigation Finance is poised to experience a boom in demand as the world tries to recover from COVID-19. Rampant financial uncertainty creates a need for the funding that insures access to justice for those of few means. Funders are well-capitalized, and preparing to sift through cases to find those with the best chances of success. This is all very similar to what the legal world experienced during the 2008 financial crisis.
Mondaq explains that law firms can better meet their financial goals by accepting a hand from a litigation funder. Businesses can better pursue litigation without investing limited funds in legal matters.
The 2012 decision involving Valetta Trust paved the way for third-party funding in the Channel Islands by disregarding outdated champerty laws. This laid the groundwork for a system where huge entities no longer have the upper hand over less monied plaintiffs. Since the Valetta Trust decision, litigation funding has steadily increased. The upswing is predicted to continue, as it has in much of the developed world.
