Discussions

Third-Party Litigation Funding is a financial arrangement where an outside investor provides funds to cover the legal expenses of a lawsuit in exchange for a share of the potential settlement or judgment. This funding helps plaintiffs, businesses, or even law firms pursue cases without bearing the heavy upfront costs of litigation. The process works by evaluating the strength of the case, its potential outcome, and the expected recovery. Once approved, the funder pays for legal fees, expert witnesses, and other litigation costs. If the case is successful, the funder receives an agreed-upon percentage of the award; if the case is lost, the plaintiff owes nothing. Third-Party Litigation Funding is becoming increasingly popular in commercial disputes and international arbitration, as it levels the playing field, reduces financial risk, and allows parties to seek justice without being limited by financial constraints.