How Commercial Litigation Funding Can Help Small Firms and Solo Practitioners
By David Gallagher
David Gallagher is an Investment Manager in Bentham IMF’s Los Angeles office. He was formerly a senior litigator at Akin Gump Strauss Hauer & Feld LLP. Bentham is the most experienced commercial litigation funder in the world. It provides funding to plaintiffs and lawyers for legal disputes in the United States and in international arbitration.
This article is the first in a two-part series covering the burgeoning topic of litigation funding. This article provides a brief introduction to two forms of commercial litigation funding that can help solo practitioners and small firms. Part two will cover ethical and other issues arising in the context of litigation funding, with an emphasis on implications for small firms and solo practitioners.
Put simply, litigation financing is the practice of spreading the financial risk of litigation to an investor. An investor provides the funds needed to keep up a litigation fight, risks non-repayment if the case results in a total loss, and shares in the gain if the case results in a favorable settlement or other resolution.