10 July 2020
The use of litigation finance is expanding rapidly across the legal world.
This trend has accelerated as the key actors in dispute resolution proceedings become familiar with litigation finance and its many benefits:
• Savvy lawyers—especially those at innovative boutique law firms—recognise how litigation finance can help them expand their practice and offer clients flexibility on fees, while providing stellar service competitive with the largest firms.
• Sophisticated litigants understand how funding can help them manage costs, unlock potential value and offset legal risk.
• Cash-constrained litigants appreciate how funding allows them to focus on their core businesses and allows them their counsel of choice.
• Forward-thinking judges and arbitrators acknowledge the positive role that litigation finance plays in promoting meritorious claims and enhancing access to justice.
As the litigation finance market has expanded, the range of funding solutions has evolved from single-case funding for cash-constrained litigants, into portfolio or ‘facility’ finance for well-resourced corporates and law firms. In essence, reputable litigation finance providers have capital to deploy into any contentious situation which, in time, may generate a return. Prior to the development of litigation finance, there were few workable solutions for boutique law firms seeking to reduce financial pressure while also driving growth. Traditional credit providers are ill-suited to consider a law firm’s contingent receivables as a valuable asset, and typically provide funding only on a recourse basis. However, litigation finance providers, with their unique combination of legal expertise and financial resources, have started to fill this void.
As a global litigation finance provider, Woodsford regularly receives inquiries from lawyers at boutique law firms, either on behalf of their clients or themselves. Woodsford expects the frequency of these inquiries to grow substantially in the coming years and would encourage lawyers to familiarise themselves with how litigation finance works in practice and the many benefits of partnering with a litigation finance provider like Woodsford.
You can read our whitepaper, Litigation Finance for Boutique Law Firms here.
For further information, please contact:
Steven Savage, WoodsFord Litigation Funding
ssavage@woodsfordlf.com