In a righteous society, all people, whether rich, poor or privileged, have the right to seek justice. However, the endemic fact is that the determining factor of whether justice can be accessed or not is the financial strength. Whether long bout costs, big fee billing, or slowness in the process, justice is often sacrificed when privilege cannot be met. Justice without Compromise is not a slogan but a promise of commitment to carry out the legal rights of people, to empower persons and provide justice without being subjected to the prerequisites of its economic impositions. This article discusses the meaning of this principle, attempts to achieve this principle, and how litigation finance is proving to be one of the best tools in closing the divide between justice and affordability.
What Does “Justice Without Compromise” Mean?
At its core, “Justice Without Compromise” is the belief that:
- Rights that are enshrined on the laws should not be a subject to negotiation and/or should not be waived on lack of finances.
- All individuals, companies, or institutions should have the same opportunities when it comes to legal solutions.
- The law system should not just work as an entitlement of the rich.
- Fairness, accountability, and due process must be observed all the time.
It stresses that justice cannot be for sale, cannot be made to wait, and cannot be denied.
The Problem: When Justice Is Out of Reach
Legal environment, particularly in complicated business, civil or corporate litigation takes time and it is costly. The following are some of the obstacles that contribute to weak justice:
1. High Legal Costs
In a big case the legal expenses, the expert views, litigation expenses can cost the client lakhs- in fact crores.
2. Power Imbalance
Cases that are commonly dragged are by corporates, institutions or by a party with money in their pockets, as the weaker party could not afford a long case battle.
3. Delayed Proceedings
Long years of litigation imply greater expenditure, pressure, and economic constraints, which compel most claimants to have meager settlement.
4. Risk of Losing
Even when they have a good case many people will not initiate or pursue the legal process out of fear of losing as well as having to meet the financial expenses of pursuing legal action.
This makes justice a rather expensive commodity that can only be had by a person who has the means of fighting until he/she gets it.
The Solution: Litigation Finance
Litigation Finance or third party funding is a financial arrangement pursuant to which a legal case is funded by a third party that will accrue a portion of the possible recovery. In case the case is not won, the litigant does not pay.
This model is non-recourse, so the money comes out of the risk of the funder, not the claimant.
How It Supports “Justice Without Compromise”
- Levels the Playing Field
Litigation finance allows normal people and small companies to fight a battle against larger foes with deep pockets corporation, banks, or institution. - Reduces Financial Risk
When it comes to a lack of upfront or out-of-poocket legal fees, claimants can certainly file legitimate cases without being worried regarding their finances. - Encourages Strong Cases
Funders consider cases based on their legal merit, and likelihood of success- cases that lack a merit are sifted out and high chances of success considered. - Enables Better Settlements
With the financial support and legal strategy behind them, claimants are able to negotiate to some extent and often are able to achieve better outcome.
Who Benefits from Litigation Finance?
Litigation finance supports a wide range of claimants, including:
- Businesses that claim debts or violation of contracts
- Oppression or mismanagement applications filed by shareholders in NCLT
- Whistle blowers and those who are retaliated on
- It is young entrepreneurs struggling against IP theft
- Investors who are claiming damages due to commercial fraud cases
- The insolvency professionals seeking to recover on behalf of creditors under IBC
The aim is universal, and the aim is Justice Without Compromise.
Litigation Finance in India: Legal and Growing
The litigation finance is already well-established in the US, UK, and Australia but has picked pace also in India. Litigation funding is not yet outlawed by Indian courts. Actually, in some of the judgments, the courts have supported the right of a litigant to seek third-party funding to contest a case.
To have an example, the Supreme Court in Bar Council of India v. A.K. Balaji (2018) noted that the litigation funding was acceptable and does not apply as professional misconduct by non-lawyers.
In addition, the Insolvency and Bankruptcy Code (IBC) has provided a new portal that litigation funders can invest in the proceeds and recovery action brought forth by Resolution Professionals or Creditors.
Case Study: Litigation Finance in Action
Consider a small manufacturing firm that has been unjustifiably dismissed out of a big supply contract by a big firm. This case is amounting to 5 crores worth of damages with legal cost of further pursuing being 25-30 lakhs worth.
In the event of no litigation funding, then the little business can forego the claim or very well settle it with injustice. But under the third party funding:
- The legal team is financed
- The expert witnesses are organized
- The charges include court fees and documents
- There is a greater likelihood that true damages can be reflected in settlement or judgment
Key Features of Litigation Finance
| Feature | Description |
|---|---|
| No Upfront Cost | Claimant pays nothing to initiate or continue case |
| Non-Recourse | Repayment only if the case is won or settled |
| Case Assessment | Funders evaluate case strength before investing |
| Strategic Support | Legal and financial guidance throughout |
| Neutrality | Funders do not interfere with client-lawyer relationship |
Is Litigation Finance Right for You?
Consider litigation finance if:
- You have a big legal case and yet you do not have money to take it up
- The value of the claims that are expected to be made is much higher than the legal charges
- The opponent here is a financially powerful one facing you
- You require financial support of a NCLT/NCLAT case, arbitration or a high stakes civil case
It is not litigation finance where people purchase justice, but it is a situation in which they regain the right to it.
Conclusion
Justice Without Compromise is not a rethoric. It is a call to reform, equality and power in the realm of the legal system. Due to the increased cost and antagonistic nature of litigation, litigation finance is transforming the notion of what can be achieved.
It also helps to put an end to the privilege system of justice because every person can afford legal recourse as financial obstacles are eliminated. In the case of law firms, businesses, individuals and even creditors, litigation finance provides the muscle that it takes to bear up, engage fair play and emerge with a victory to be proud of.
