Introducing “Litigation Funding Solutions”
There are a number of well-established litigation funding lenders operating in the Australian market and the size of the industry is growing rapidly.
The market lender started out as a $3 million fund called Insolvency Management Fund. It has grown to be a public company with a market capitalization that exceeds $200 million. Other funders such as America Lawsuit Loans have been in business for more than 10 years. An increasing number of new funders are entering the market. Some of these funds are from overseas offering funding for larger claims such as class actions or claims exceeding $20 million in size.
One of the major difficulties faced by a claimant who needs litigation funding is that they commonly have insufficient resources to even prepare their cases to a point suitable for assessment by a funder. This is particularly so with Liquidators and Trustees in Bankruptcy who are appointed to asset fewer administrations with good potential legal actions but no funds available immediately to cover the expense of a legal assessment and basic case preparation.
In many situations, good claims are not being pursued because of the initial amount needed to determine whether or not an action is eligible for cash advances, and if suitable which of the litigation lenders is best to approach depending on their own funding criteria and case interest.
I have attached to this article a short note “The Four Elements of a Good Case Suitable for Litigation Funding” which presents a practical viewpoint of the important features that funders look for in the cases they select for funding.
Those features are:
- A case that has good prospects of success;
- The claim that is profitable, or of sufficient size to justify funding;
- The defendant is able to pay; and
- The claim may have leverage advantages to pressure early settlement.
America Lawsuit Loans have established Pre Settlement Funding Solutions as a business that will assist claimants to properly assess whether their legal actions qualify for litigation funding, and help claimants with good commercial cases to secure funding to best enable them to go forward.
In many instances, they will the first consultation to provide feedback on whether an action is suitable for funding assistance or not. At the end of this preliminary assessment process funding agency aim to give advice on the steps to be taken to secure funding. This service is also relevant to legal actions that are underway and need additional funding to go to trial in the case of defended actions.
There is no doubt that the high cost of litigation is a barrier to securing justice and enable good claims to be vigorously pursued to judgment or settlement. Litigation funding is a financial product now available in America to facilitate these outcomes however good case assessment and selection is a key factor.
Litigation Financing firm believes to have the necessary case selection skills and experience, and close relationships with leading litigation funders operating in America, to assist and add value to this process.
Please call America Lawsuit Loans on 888-335-3537 to contact them to discuss the attributes of any legal action you want to proceed with but don’t have sufficient funds to cover the legal costs required to investigate or prosecute the claim.