Arbitrium Litigation Financing
Arbitrium Litigation Financing
Litigation finance, also known as litigation funding or third-party funding, is a financial mechanism where capital is provided to claimants, law firms, or companies, secured solely by the future proceeds of their valid legal cases. This practice enhances accessibility to legal services and promotes a broader engagement with the legal system, contributing to public policy goals.
There are two primary categories in litigation finance: “consumer” and “commercial.”
Consumer litigation financing involves non-recourse cash advances primarily for personal injury plaintiffs and individual consumer cases. These arrangements usually include smaller amounts, typically ranging between $2,000-$5,000, and are repaid along with litigation fees only if the plaintiff recovers from their legal claims.
Commercial litigation finance encompasses non-recourse investments in large commercial disputes brought by companies or individuals. It supports various legal claims, including contract disputes, commercial disputes, international arbitration matters, trial award monetization, and law firm receivables purchase. These arrangements often involve sophisticated claimants, are represented by legal counsel, and may require substantial commitments of lawsuit financing, typically in the multi-million-dollar range.
Litigation finance operates on a non-recourse model, ensuring that repayment is contingent on case success. Unlike traditional loans, litigants are relieved of debt obligations in case of unsuccessful outcomes.
Litigation finance operates on a non-recourse model, ensuring that repayment is contingent on case success. Unlike traditional loans, litigants are relieved of debt obligations in case of unsuccessful outcomes.
Litigation finance operates on a non-recourse model, ensuring that repayment is contingent on case success. Unlike traditional loans, litigants are relieved of debt obligations in case of unsuccessful outcomes.