A large corporation sued a small business owner for breach of contract. The small business owner had no financial resources to defend himself against the lawsuit. A litigation funder agreed to fund the small business owner’s legal fees in exchange for a share of any settlement or award.
With commercial litigation finance, he could defend himself list of algeria whatsapp phone numbers against the lawsuit. He received a settlement that was more than twice as much as what the corporation had originally offered.
Case Study 2: A woman was injured in a car accident.
The woman could not work due to the injury after the car accident and had mounting medical bills. A litigation funder agreed to fund her personal injury lawsuit in exchange for a share of any settlement or award. She obtained a settlement that was enough to cover her medical bills and lost wages.
Potential Drawbacks of Litigation Financing
While legal financing can offer a number of benefits, there are also some potential drawbacks, including:
Litigation funders typically charge a fee for their services, ranging from 20% to 50% of any settlement or award the plaintiff receives.
Loss of control. Litigation funders typically have some control over the litigation process, such as the right to veto settlement offers.
Litigation funding agreements can be complex and challenging to understand.
Weigh the benefits and drawbacks of using litigation finance before making a decision. Most importantly, work with a reputable litigation funder.