The rationale and benefits of litigation funding

The key takeaway regarding litigation funding is that it promotes access to justice.

Access to the justice system is very expensive and time consuming. This alone is enough to deter individuals with deserving claims from seeking legal advice. Oftentimes, individuals are also simply not aware that they have a legal claim or may believe that their claims will not be successful against an opposing party with much deeper pockets.

Litigation funding therefore levels the playing field.

By doing so, it encourages fair settlements. When both parties find themselves on a more equal footing, they will be more prone to find a reasonable settlement rather than go through lengthy legal proceedings. This is especially true when one of the parties is in a weaker financial position, in which case the “stronger” opposing party can easily try to force an unfair settlement that the “weaker” party cannot afford to fight back.

There are a number of other benefits attributed to litigation funding.

Litigation funding offers claimants the possibility for better legal representation. Since the driving factor behind the choice of counsel isn’t cost, claimants can get access to more qualified and better suited legal counsel.

Individuals or corporations that are supported by a funder will also be able to put the capital that they otherwise would have spent on litigation to better use.

Furthermore, litigation funding is a great risk management tool as it is in principle non-recourse, meaning that if the case is lost, no amount of money will have to be paid to reimburse the costs of funding.

Interested in litigation funds? Do not hesitate to contact us at Blue Lakes Advisors


Laureen Moret,
Litigation Finance Specialist, Lawyer, LL.M.
Galerie Jean-Malbuisson 15
1204 Geneva                     M  +41 79 659 15 95
Switzerland                       F   +41 22 552 09 26


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