Legal financing: managing the costs of legal disputes

Legal bills pile up fast. Especially in disputes, and even more so in large arbitrations and litigations. Then there's the risk of losing your dispute and having to pay not just your bills but the other side's too. This is why many good claims go unenforced. Whether for a lack of funds or the unwillingness to commit them to an uncertain outcome, costs are usually the main factor in not commencing a legal dispute.

Legal financing (also called third-party funding or litigation finance) can help. In the simplest of terms, it means that the claim is financed by a funder who covers all legal bills, court fees and other expenses. Funders can also assist with the enforcement of existing judgments or arbitration awards, and can offer insurance against losing a claim, i.e. the costs of the opposing party to be paid if a claim is lost.

Legal financing reduces or eliminates the financial risks of legal disputes, but that is not its only benefit. Having an experienced funder review a case also offers a solid reality check for your potential claim.

Legal financing advantages

• Maximise the value of your claim while keeping the risks low
• Access justice despite limited funds or legal fee concerns
• Turn legal departments from burdens to profit centres

Schoenherr cooperates with the world's leading providers of legal financing. The Schoenherr litigation team can advise you on funding your arbitration or litigation, or the enforcement or monetisation of your award.

If you have any questions about legal financing, feel free to contact Leon Kopecký.