Managing the risk and cost of litigation is a challenge for many
businesses. They may forgo meritorious and potentially profitable
litigation due to budgetary pressures — either because they
do not have the resources to litigate, or because they choose to
direct their capital elsewhere. Businesses and their counsel in the
U.S., U.K., Australia and most recently Canada have a new tool to
pursue litigation: commercial litigation funding.
Q1: What type of claim is right for commercial
litigation funding and what are the investment
criteria?
A commercial litigation funder will fund all types of litigation
or arbitration, including claims relating to breach of contract,
breach of duty, intellectual property and insolvency. The claim
should have good prospects of success and a defendant able to
satisfy a judgment. The budget should be approximately one-tenth of
the realistic claim size to ensure that, on success, the litigant
receives the majority of any recovery. A
