Mastering Law Practice Management

Many firms are now turning to litigation finance to get comfortable with taking matters on contingency. With litigation finance, firms are given the opportunity to maximize revenue and generate greater value for their clients.

Get a behind the scenes look at the factors we take into account when reviewing a potential matter for investment and how our funding process works.

Could your firm benefit from using portfolio funding? This case study explains how a law firm was able to significantly increase its return and mitigate risk with litigation funding.

Litigation finance allows law firms and companies access to a source of capital that can be far more flexible than other financing options—with stronger results for the bottom line.

Over the course of its years in the litigation finance industry, Bentham has developed funding criteria to guide its investment strategy. These criteria are tailored to each type of funding product Bentham offers, and, while they vary slightly by funding category, they are all designed with the common goal of helping to identify quality cases where the introduction of litigation funding can provide a fair, healthy return to all parties involved – claimant, lawyers, and funder.

Litigation finance provides litigants and lawyers access to capital to pursue meritorious litigation where there is a substantial chance of a positive outcome. In exchange, the funder receives a return, usually via a multiple of its investment or a percentage of the recovery. Financing is non-recourse, which means that the funder receives a return on its investment only in the event the litigation is successful .

Claimants should exercise caution in seeking out litigation funding, paying particular attention to the funder’s track record of success, source and availability of capital, and history of disputes (if any) with claimants or their attorneys.

With analysts predicting that the economy will slow in the year ahead, companies may find litigation finance to be a useful tool in managing their legal spend.

Litigation finance can serve as a powerful tool for law firms seeking to attract new clients or win plaintiff-side work from existing clients. Incorporating funding as an option in pitches submitted to secure work affords significant advantage to law firms. Among other benefits, funding helps clients reduce litigation risk, afford their top-choice law firm and improve their balance sheet.

Justice Brett Kavanaugh made headlines earlier this month when he issued his first majority opinion for the United States Supreme Court. The opinion resolved a circuit split over whether the Federal Arbitration Act permits a court to decline to enforce arbitration agreements that delegate arbitrability questions to an arbitrator.