Litigation finance is going from strength to strength in the UK & globally, says Neil Purslow
Four years on from Lord Justice Jackson’s reforms, there is no doubt that litigation funding, or litigation finance as it is becoming increasingly known, is now mainstream in the UK.
Therium’s data show that for 75% of litigation partners at UK law firms funding is central to their discussions with clients. That trend is reflected by recent research from law firm RPC which highlighted that 2016 saw a 25% increase in litigation funding in the UK over 2015’s level, with the leading sector players investing £723m in legal claims versus £575m in 2015.
Key driver
The key driver behind the momentum in the litigation finance market has been the growing recognition that third party funding eradicates the costs and associated risk issues of litigating for claimants because the funder assumes all of the financial cost, including the other side’s if the case is lost—and is only paid if the claim wins. Unsurprisingly, this is very attractive to potential claimants, given
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