Litigation Wary or Litigation Weary? Funding Can Help With Both.
Litigation funding can be a valuable tool in discussions with clients, both when exploring a legal claim and as an action progresses.
First, funding can help when a client has a meritorious case, but is wary about commencing litigation because of the cost and risk. This is particularly true when clients have competing demands on their cash, and want to dedicate resources to their core business, rather than to litigation. It is equally important where a client does not have the means to retain top counsel and use the best experts. Funding enables clients to properly resource the case by shifting the cost and risk to a funder, while still realizing the benefits of a successful action.
Second, funding can breathe new life into a claim when a client is litigation weary, exhausted by the process or its impact on their business. For example, Bentham has received applications for funding where:
- A difficult opponent forced the litigation costs far beyond what the client expected to pay.
- An exciting but expensive business opportunity arose, and the client had to decide between seizing the opportunity and continuing to advance its litigation.
- While raising money, potential investors expressed concerned about the cost and risk of litigation on the company books, so the client considered dismissing the claim to secure the external investment.
Litigation funders can help at any stage of an action, so if a client is considering abandoning a strong claim for financial or business reasons, funding might relieve that pressure.
Whether litigation wary or litigation weary, the possibility of funding should be part of the discussion before a client chooses not to advance, or to discontinue, a meritorious action. To learn more, contact us.