Litigation financing: what you need to know

Undertaking legal challenges can be costly and time consuming for firms, while being the subject of one is no easier. James Delaney, director at litigation specialists TheJudge explores the mechanics of litigation financing

Pursuing a legal claim can create a quandary for a business. For some, the claim could be a matter of survival. For others, the claim while meritorious, is not necessarily business critical but nonetheless has a potential recovery that is worthy of pursuing. 

The difficulty for both scenarios is that the dispute itself may have been unexpected and therefore not previously budgeted for in the accounts. 

Fortunately, a risk transfer market exists for claimants pursuing litigation or arbitration claims, which means they do not necessarily have to carry the cost burden of pursuing a claim, or indeed the financial risk of the claim being unsuccessful.

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