There is a double approach to litigation funding in England and Wales, which involves civil legal aid and funding provided by the private sector.
Since the 1990s, governments have been promoting the latter. Let’s debunk five myths about litigation funding.
1. Litigation funding is a loan
Litigation funding is not a traditional loan; if the case is not settled, the client does not owe anything.
If you are interested in finding sources of litigation funding, specialists such as https://www.novo-modo.co.uk/litigation-funding can help.
2. It makes a client seem desperate
Taking or defending legal actions is not a sign of desperation. If the only way you can afford it is by sourcing litigation funding, so be it. Your funding is just as valid as the deep pockets your opponent may have.
3. It may slow down the case
Reliable funding partners do not try to dictate strategy when it comes to conducting the case; instead, they help by reducing the pressure you may feel from financial constraints and ensure your lawyers receive funds in a timely manner, meaning they can continue to negotiate on your behalf.
4. The concept of litigation funding is dubious
As more companies come onto the market to fund litigants, the more this myth is debunked. Funders aim to work with clients on a range of cases covering many aspects of civil litigation, whether they wish to initiate action or appear as defendants. Top legal firms offer their clients information on litigation funding and accept that these companies are partners in the action rather than just the funders.
5. It is expensive for clients
Responsible funders will explain the costs at the outset of discussions, which may vary depending on the initial advance and the complexity of the case. What it is important to understand is that there are no upfront costs for the client, although it is not a one-size-fits-all solution.
Conclusion
Whether you are an individual, a company, or a law firm, a litigation funder will be available to ensure a just outcome is achieved.
