The role of Litigation Finance in Improving the Accessibility of the Legal System by All. Due to financial inabilities, thousands of individuals drop good lawful cases every year not because they are not right, but because they are not financial well off. Whether it is a person that is struggling against a loss of livelihood or a small company against an awe-inspiring corporate behemoth, there are far too many cases that leave the side of justice without ever getting to the door due to not being able to afford repaying the court costs. This is not only a personal catastrophe. It is institutional failure. However, one trendy solution is reversing the situation: litigation finance.
The Cost of Pursuing Justice
It is costly to sue a case in the court. Contingent fees, filing fees, expert witnesses, breakfast at the courthouse, depositions, it may run into thousands. In most cases, legal recourse is just not possible particularly to individuals who are already struggling on financial grounds or traumatized. It is nice to believe that law is fair, but the rest of the story is as follows: even when one has all the cards to win the case in the court, one still cannot claim the prize because of the inability to afford the case.
What Is Litigation Finance?
Litigation finance (or legal funding) is a financial tool that gives plaintiffs the resources to pursue their cases without the burden of upfront costs. Here’s how it works:
- A litigation finance firm evaluates the merits of a legal case.
- If the case has a strong chance of success, the firm provides funding to cover legal expenses.
- In return, the firm receives a portion of the settlement or judgment, if the case wins.
- If the case loses, the plaintiff owes nothing.
This non-recourse structure makes litigation finance low-risk for plaintiffs—and potentially life-changing.
Leveling the Playing Field
It is not just another form of litigation funding. It is an equality instrument. See a worker being fired without cause and taking a company to court as a single mother. Or a small company fighting a big supplier over breach of contract. It is not difficult to see that in both scenarios, poorer party is put at a disadvantage. The field of litigation finance balances that playing field in such a way that individuals can rise to the occasion to take on injustice, whether they are rich or not. It provides the underdog the opportunity to retaliate and come out to speak.
Who Benefits?
- Everyday individuals in personal injury, employment, or civil rights cases
- Small and mid-sized businesses in commercial disputes
- Law firms that want to take on more public-interest or contingency work
- The justice system, which benefits when more valid claims are brought forward
By removing the financial barrier to entry, litigation finance restores faith in the legal process and promotes accountability.
Concerns & Transparency
Just as any monetary device, litigation fund should be applied in an ethical way. It has to be transparent, on fair terms, and to be regulated properly. The third party has been a source of worry among critics that there may be external interference on strategy of the law, the trusted funders will normally leave cases to the discretion of the law except on the financial matters. The most reputable litigation funding companies have no hidden agendas but work with transparency, inclusively explaining terms and assist on causes that would otherwise be left to remain silent.
Justice Shouldn’t Have a Price Tag
No one should be in a position to either feed his or her family or fight to get his or her rights. Litigation finance is not the answer to every issue with the legal system, but it is a change that eliminates one of the biggest barriers in the justice system: money. That is game-changer. As more and more people are freed up to work in this industry, the better hope there is that one day, justice can just be about truth and not how much money you will spend on a lawyer.
