Those who disapprove of funders need to appreciate that providing access to justice (albeit at a price) is laudable, says Dominic Regan
Commercial providers of litigation funding have never had it so good. Shares in one provider, Burford Capital, have risen by 50% in value this year. What is going on?
Supporting substantial litigation can be rewarding. A dreadful irony is that the funders can recoup more than the lawyers who actually secure the recovery. Investors are drawn to the rewards of a successfully funded case. The Financial Times on 19 November last year identified a return of up to 300% in some litigation.
An obvious question is why would one relinquish a serious part of damages to a funder? Why not self-fund and retain the entire award? My enquiries threw up some interesting details.
Win-wins & free rides
Mainstream banks are just not interested in funding a claim. Indeed, some banks now regard lawyers as a risky proposition all round. The finance director of a large business in Leeds told me that his board would not sanction litigation expenditure because of the
