Hot Issue (#7-8 July-August 2020)

Third Party Litigation Funding: A Source of Leverage in the Great Cessation

by James Hart

As a semblance of normality starts to return to our lives, we are left contemplating what lies ahead for businesses in what will undoubtedly be one of, if not the greatest, economic downturns of our era. In such an environment many businesses are forced to focus on negotiating and limiting losses rather than building capacity and finding sources of growth. The global economic pie has shrunk and there will be an inevitable scramble by companies, institutions and nations to maintain their share of it. In the legal services market this will result in two key conflicting trends: an increasingly litigious environment and a reluctance or inability to spend money on legal costs. How can these two conflicting trends be reconciled? Enter litigation funds.

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