What is litigation funding
Litigation funding, also known as third-party funding or legal finance or dispute finance, allows parties unrelated to a lawsuit to provide capital to claimants involved in a legal dispute, or to their professional advisers to cover the costs associated with pursuing the legal claim. In return for financial support the funder receives an interest in any recoveries when the dispute successfully resolves. As the finance is typically non-recourse, the claimant and their advisers owe nothing to the funder if the legal claim is unsuccessful.
The financing of legal disputes by third parties is an historical practice dating back to medieval England, with evidence also found in other countries. Today’s contemporary approach to litigation funding germinated in Australia in the 1990’s, as a tool for insolvency practitioners. In 2006 a High Court of Australia ruling permitted the expansion of litigation funding to single and multi-party (class action) claims, and the spectrum has since continued to expand worldwide.
The application of litigation funding can vary by jurisdiction, but it is frequently used for commercial disputes, group claims (class actions) and insolvency proceedings. Litigation funding allows parties to outsource the cost and risk of pursuing disputes. In commerce, litigation finance provides businesses with an alternative to using their own funds, and for those who cannot afford to pursue justice themselves it provides access to justice and a level playing field.
Litigation finance can be deployed up front at the outset of a dispute, or throughout the course of a dispute. The litigation funder typically recovers its expenses and a return on its investment at the completion of the case - usually a multiple of the amount invested and/or a share of the amount awarded to the client (through judgment, award or settlement).
Who uses Court House Capital Litigation Funding
Our finance is used by companies, individuals, groups and professional advisers as a capital and risk management strategy, and a tool for access to justice.
How to apply for litigation funding with Court House Capital
CONTACT US
Court House Capital
Level 45, 25 Martin Place
Sydney NSW 2000
