Philip Rubens / December 2022

The demand for litigation funding continues to rise as legal costs increase and businesses and individuals become increasingly aware of this alternative financing option. Litigation funding is a way of financing legal action by providing a third-party with money to cover the cost of pursuing a case. This type of funding is often used to pursue complex and expensive cases that would otherwise be too costly to pursue.

Recent developments in litigation funding have focused on improving the availability and accessibility of this type of finance. The increasing availability of online litigation funding platforms has made it easier for individuals and businesses to apply for and receive finance, this has allowed more cases to be pursued.

In addition, some of the latest developments in litigation funding have focused on making the process more transparent. This includes making the terms of the funding agreement clearer and providing greater transparency in the way the funds are used and managed. This is important as it allows those who are receiving the funds to understand exactly how and where the money is being used.

The rise of litigation funding has also led to the development of more sophisticated financial products, such as specialised insurance policies. These insurance policies can provide additional protection for those receiving litigation funding, as they cover the cost of any legal expenses incurred in the course of pursuing a case, as well as any losses resulting from the case not being successful.

Finally, the rise of litigation funding has also seen the emergence of a new type of investor: the litigation finance company. These companies typically provide funds to clients in exchange for a portion of any proceeds that may be recovered from a successful case. This allows clients to pursue cases that may not otherwise be affordable, and provides investors with a potential return on their investment.

Overall, the latest developments in litigation funding have sought to make the process more accessible, transparent, and secure for those receiving finance. This has allowed more cases to be pursued, and has provided investors with the opportunity to invest in cases that may have otherwise been too costly or too risky to pursue. As litigation funding continues to grow in popularity, it is likely that we will continue to see further advancements in this area in the future.

For more information on Litigation Funding contact Philip on philip.rubens@gunnercooke.com