Publication | ThinkSet, issue 6
Litigation Finance 101
Bob Craig, Daniel Ryan, and Larry Tedesco
If you’re working in the corporate legal space, you’ve likely encountered litigation finance. But while many in-house attorneys have seen cases against them funded by third parties, most legal departments still aren’t using it themselves. And plenty of executives still aren’t sure what to make of it.
Does using litigation finance, also commonly known as litigation funding, encourage frivolous litigation, or does it level the playing field? Does it change the way in-house counsel think about legal strategy, or does it help them convert legal claims into value-generating assets?
The answer to each of those questions is the same as the answer to so many legal queries: It depends. That is, it depends on whom you ask, on the form of litigation funding and on the facts of the matter itself.
Our aim is to offer a few thought-provoking perspectives to anyone grappling with corporate legal costs or seeking to generate value in their legal departments; a simple guide to the advantages of using litigation funding; and an honest assessment of the reasons why some folks remain circumspect.