About Financing Litigation in the Common Language.

When there is no money for a lawyer …

So, you are faced with injustice. You delivered the goods, but did not receive payment, or you became acquainted with raiding, as a result of which you lost your property, or your invention (development, trademark) was used by the powerful, or … in general, a situation occurred in which you need to restore justice, that is, go to court. But what if your opponent has a strong legal team with experience of representation in court, and you have, at best, a full-time lawyer who is engaged in the current activities of the company, or a couple of classmates who have completed legal and not the fact that they work in their specialty.

You understand that your resources and those of your opponent are not equal, and after thinking for a while, you still decide to turn to lawyers. You are not beginner, and you understand that you need a professional no worse than your opponent. Entering a lawsuit with an amateur, you risk permanently losing not only hope, but also the assets themselves due to the wrong strategy of the lawsuit or, which is quite commonplace, due to procedural errors of an inexperienced lawyer.

Therefore, you need an experienced, respected representative in court. And you go to a large, well-known law firm. Of course, you will be listened carefully. Modern law firms tend to have very polite staff. But when the conversation comes up about the costs of the lawsuit, including tariffs for the hourly work of specialists, your enthusiasm will go out. Yes, you have a very good and promising dispute. The amount that will be received from the defendant will more than cover all legal expenses. But…. But it will be in the future.

During the preparation and during the trial, the employees of the law firm will have to do a lot of qualified work and receive the appropriate payment. Now, and not according to the results of a court decision. It is unlikely that they are ready to take the risks of a lawsuit with you. Still, this is not an insurance company, but a law firm. Therefore, most large and reputable law firms will politely refuse you.

To solve this problem, companies that are engaged in «litigation funding» have appeared on the financial and legal market. The general principle of financing such companies is «No gain — No income.»

The investor finances the lawsuit in whole or in part, covering the costs of lawyers, court fees, payment of necessary examinations, business trips, accommodation, etc. You do not pay anything. But do not consider the investor as a patron. He will return his money and income from investments. But only after a lawsuit and only if the lawsuit is won and, moreover, monetary or other assets are received from the defendant. And if the trial is lost, then you are not paying the investor anything. From the word «completely.»

Most often, the activities of such companies are associated with the accessibility of the judiciary. It is thanks to such an investor that a small company or private person aligns its capabilities in a lawsuit against a large defendant who can afford highly qualified lawyers and / or drag out the process until the plaintiff leaves the race.

The investor takes the risks of your lawsuit, and, to make a decision on financing, carefully evaluates them. It is important for him to understand whether, in principle, the defendant will be able to execute the court decision, how legally strong the plaintiff’s position is, what evidence will be presented in court, the qualifications of a lawyer, the strategy of the trial, etc. And if all the factors suit him, you will be asked to sign a financing agreement.

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Please note — the investor risks his own money. Therefore, he is no less interested than you, that an experienced, qualified lawyer specializing in the subject of your dispute would conduct the case in court.

 

 

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