The Rise In Litigation Funds In The Channel Islands

The impact of the COVID-19 pandemic on the economic climate has led to litigation funds becoming more topical and in demand than ever, providing clients with the opportunity to access justice despite the financial difficulties they may be facing as a result of the worldwide restrictions imposed on businesses.

Litigation funds (which can include litigation finance, legal finance and third party funding) provide a mechanism whereby an investor that is otherwise unconnected with a legal action may finance all or part of the costs associated with that legal action, in return for a pre-determined share of the proceeds arising from such action. For businesses with financial constraints or the desire to meet certain economic outcomes, litigation funding provides an invaluable service, giving businesses the opportunity to pursue valid claims and benefit from its success, without dwindling their cash flow at a time when it is paramount. Litigation funding fills a void