Litigation is a very costly affair. An individual involved in litigation needs good financial backing to work out the case, hire a lawyer, and settle court dues and other small and big expenses. Most people fighting lawsuits may face financial hardships. They may not even go in for a fair settlement. At such a time, the Litigation Financing comes in handy.
Companies offer Litigation Financing to those persons, attorneys or companies awaiting a fair settlement. This is the fund given as advance or pre-settlement charges. Litigation Financing is a non-recourse settlement that helps the individual financially in times of litigation. No matter how meritorious his or her claim for redress of grievances is, they may not succeed in litigation all alone. Hence, they hire an attorney who has specialized in the kind of case the individual is involved in.
For instance, a veterinarian will approach a specialist attorney in veterinary malpractice cases. After building up and filing a case, the individual avails himself of Litigation Financing from a Litigation Financing Company, through the attorney. The company, based on its evaluation of the case worthiness, fixes the fund. The Litigation Financing is often non-recourse in nature. The individual or company needs to clear its dues according to the agreement signed with the company. That is, the company buys a portion of the settlement charges as recovery. The payment is made only if the case is won. Litigation Financing is thus a pre-settlement charge given as an advance to the client approaching a Litigation Financing company. The company recovers the ‘financial help’ if and only if the client wins the case. Of course the individual has to make an initial fee payment. Litigation Financing is offered for personal injury, accidents, malpractice, wall collapse and other such cases.