Litigation Funding is a relatively new concept in the history of legal practice in western common law system. It is a modern solution to the problems of access to legal services which are being experienced by the fact that traditional lawyers generally charge a large amount for their services. Litigation funding can be used to make litigation more accessible where you have a strong case and you are willing to borrow money from a lender in relation to the funding for the case.
Some of the key cases which litigation funding firms are now working on are shareholder class actions and other types of class actions in relation to TransPacific Industries Ltd, Bauxite Resources Limited, Gunns Ltd, ION Ltd MPA by the Shareholders and WDS Limited. When assessing if it is viable to conduct a claim in relation to a company like one of these, the litigation funding company will normally look at elements such as the amount of the claim, the type of claim, the strength of the claim, the expected legal costs, the expected time to resolution, the case complexity and the likelihood of recovery against the defendant if the claim is successful. It is necessary to consider all of these factors and come to a firm resolution and understanding about each of these points before proceeding with a loan as it is a loan for an enterprise which is obviously high risk in nature but can also have very high returns if if pays off. However, you need to recognize that litigation is something that is heavily laden with risk and does not always go according to plan and the litigation funding company will most likely require a form of property security in order to give you a loan.
If you have obtained an assessment from a litigation funding company which appears to support the notion that it is a very strong claim where there is a very high probability that the loan will be able to be paid back and you would not be able to fund the litigation in any other way, then a litigation funding loan may be suitable and you should contact us about this possibility using the contact forms available on this site.
