Litigation finance is growing dramatically in popularity as well as in importance, and both litigators and transactional attorneys need to understand it — and what it means for the legal industry. Despite the boom in litigation finance in recent years, there are still many legal and financial professionals who fail to understand the benefits of this working capital.
Contingent fees, in which clients pay lawyers only if a case is won, have long been a significant feature of America’s legal system. “No-win, no-fee” arrangements help shift risks from plaintiffs to a suit to their lawyers, and also makes it less likely that a claimholder would take off a strong case for fear of a big financial loss.
It has almost around a decade in the business where the principle of risk-shifting has gone further where attorneys accept money from third parties to fund cases in exchange for some of the winnings. Trusted parties such as elevant finance has since then taken off.
Both litigation funders and fundees go to vast lengths to protect attorney-client privilege, however, the reason it has become such a popular system because process of evaluating and funding a case can sometimes be completed in a matter of days.
Why is it preferable for the claimants?
• Allows claimants to pursue strong claims
• Provides a solution to corporate claimholders wanting to hedge litigation/arbitration costs
• The support sends a powerful message to the defendant as it portrays the merits of the case showing they are strong enough to take the financial risk
• Legal expenses are being paid by a third party
Benefits in legal terms
• Assurance that fees will be paid promptly and regularly
• More good cases can be taken on
• Allows firms to offer financial solutions along with their legal expertise
• Reassures risk averse clients that downsides are covered
Elevant Finance Group LLC is leading provider in litigation finance and pre-settlement funding nationwide. They understand that the cost of pursuing settlements and growing a firm is difficult and thus with their timely funding allows attorneys, law firms and service providers to focus on growth instead of worrying over the working capital and case costs. Visit elevant.capital/companies/elevant-finance/ to find out more about their body of work.
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Everything You Need To
Know About Litigation Finance
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Contingent fees, in which clients pay lawyers only if a case is won, have long been a significant feature of America’s legal system. “No-win, no-fee” arrangements help shift risks from plaintiffs to a suit to their lawyers, and also makes it less likely that a claimholder would take off a strong case for fear of a big financial loss.
It has almost around a decade in the business where the principle of risk-shifting has gone further where attorneys accept money from third parties to fund cases in exchange for some of the winnings. Trusted parties such as elevant finance has since then taken off.
Both litigation funders and fundees go to vast lengths to protect attorney-client privilege, however, the reason it has become such a popular system because process of evaluating and funding a case can sometimes be completed in a matter of days.
Why is it preferable for the claimants?
• Allows claimants to pursue strong claims
• Provides a solution to corporate claimholders wanting to hedge litigation/arbitration costs
• The support sends a powerful message to the defendant as it portrays the merits of the case showing they are strong enough to take the financial risk
• Legal expenses are being paid by a third party
Benefits in legal terms
• Assurance that fees will be paid promptly and regularly
• More good cases can be taken on
• Allows firms to offer financial solutions along with their legal expertise
• Reassures risk averse clients that downsides are covered
Elevant Finance Group LLC is leading provider in litigation finance and pre-settlement funding nationwide. They understand that the cost of pursuing settlements and growing a firm is difficult and thus with their timely funding allows attorneys, law firms and service providers to focus on growth instead of worrying over the working capital and case costs. Visit elevant.capital/companies/elevant-finance/ to find out more about their body of work.
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