Litigation funding typically occurs in two general areas:
- Lawsuits involving businesses, and
- Lawsuits involving individuals.
It should never be confused with that of a loan. It’s a non-recourse funding where any money you receive is yours to keep irrespective of the outcomes of your case.
Below, we have come up with a few fundamental benefits of third party funding in personal injury lawsuits. If you are struggling to make ends meet in your current legal budget, go through the points without any further ado.
1. Promoting an approach to justice
Third party funding in personal injury claims helps the disadvantaged gain an easy access to the civil justice system.
Personal injury lawsuits cost a lot of money. Most individuals cannot afford to outweigh their defendants and other insurance companies.
It is for this very reason, most of them cannot receive or secure justice without financial help even when they’ve suffered injuries as a result of negligence on somebody else’s part.
Third party funding gives them a welcome assistance in this aspect especially, the ones without jobs and no health insurance. Without this type of funding, many plaintiffs would not be able to secure a just result as they would not be able to see through their claims till the end.
2. Proper management of financial risks
Third party litigation funding provides the society with a systematic way of managing and diversifying the risks and costs of lawsuits in the same way an insurance helps in managing and diversifying risks and costs of property damage or healthcare.
In other words, litigation funding transfers the risks and costs from those harmed or injured by better-funded opponents, onto the funder who can help to manage the risks and costs of the lawsuit on behalf of the plaintiff. That is because if you win, the funder receives a certain percentage of your claim. But if you lose, s/he receives nothing.
3. Protecting the general public
Personal injury litigation funding helps a common man or woman secure justice from financially powerful insurance companies fighting against an average individual’s case.
In contrast to commercial lawsuit funding, personal injury lawsuit finances focus strongly on securing justice or righting the wrong. Commercial litigation, on the other hand, is purely about money and the marketplace.
Thus, personal injury insurance help a lot in changing the status quo of individuals living from paycheck to paycheck (or the ones living without a paycheck) who must go to the court against mammoth insurance companies, particularly the ones who are proficient defendants in this regard.
4. Increased efficiency
Litigation funding can help to reduce delays, time, and costs of lawsuits.
When defendants come to know of the fact that the plaintiff has secured himself/herself litigation funding, most of them become more inclined to settle. They become aware that they won’t be able to win by delaying the process.
Final word
If you are looking for the best litigation funding deals in the UK market, don’t forget to pursue options. Just because your application’s acknowledged by a company doesn’t mean there are no better options out there.
