Friday, October 30, 2015

Litigation Funding For Any Legal Dispute

Litigation Funding For Anyone, Anywhere In The World


Invest4Justice allows anyone, anywhere in the world and with a dispute of any size, to obtain litigation funding. It also allows investors from all continents to benefit financially from litigation funding.


Litigation funding has received a considerable amount of press over the past decade, with many articles in publications such as the Economist, the New York Times, the Financial Times and the Wall Street Journal discussing this highly profitable new business.


Litigation Funding

Litigation Funding


Litigation funding, also known as third-party funding, was born in Australia roughly a decade ago. The idea is very simple: specialist litigation funds pay the costs of very large legal disputes, in return for a percentage of the compensation that was awarded. By selecting disputes carefully, litigation funders could make significant returns, and some litigation funders, such as Burford, became large, publicly-traded companies, earning returns that were in excess of 50% per year.


While this was a very useful mechanism for the legal financing of very large disputes, and as lawyers we used litigation funding for a large case against a billionaire in South America, it was almost totally inaccessible for the vast majority of litigants.


We spent no less than one year speaking with over a dozen litigation funders concerning a very strong case where the litigant could not pay his legal costs precisely because the opposing Party had destroyed his enterprise and left him penniless. This took thousands of hours of our time as lawyers, and ultimately no litigation funding was made available since the amount of compensation sought was “only” USD 15 million, and the litigant was not based in an OECD country. In addition to this being a huge waste of time and energy, this seemed highly unfair to our client.


If litigation funding were to be of any use to the average litigant, we thought, it clearly needed to be made available for smaller cases, and it also had to be made available outside of the 34 OECD countries. The idea of litigation crowdfunding was born, which allows any investor to invest a basket of disputes (thereby diminishing their risks), while opening up litigation funding to litigants from all countries.


In addition to widening the pool of potential investors to include billions of potential investors, Invest4Justice hopes to allow litigants from any country to have their day in court while keeping more of their compensation. Due to the high demand and low supply of litigation funding, the litigation funders were able to demand a very high percentage of the compensation that a litigant ultimately received. On Invest4Justice, the litigant decides the percent of his or her compensation that he would like to offer as a reward, keeping full control of his or her legal dispute from start to finish.


Unlike traditional litigation funders, Invest4Justice also allows defendants to request donations for their legal disputes, while opening up litigation funding to a limitless supply of capital.


– Invest4Justice



Litigation Funding For Any Legal Dispute #LitigationFunding

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