How will third party funding affect the legal landscape? Jonathan Wheeler and Felicity Potter consider the possibilities
Third party funding enables claimants who have a reasonably strong case to bring litigation they would otherwise be unable to bring and so promotes access to justice. It is also potentially an attractive tool for corporates who can afford to litigate but who do not want to incur any of the costs or risks associated with litigation. Anecdotally, however, it seems that few corporates have expressed a serious interest in litigation funding, mainly due to its high cost in terms of recoveries which would have to be given up to the funder in the event of success.
The third party funding market is still a young market and advisers and funders alike are feeling their way. Funders are generally interested in large commercial disputes and will only fund cases where there is a high prospect of success. The funding process can be lengthy because the funder will wish to scrutinise closely the merits of the case and, consequently, arrangements can take time, particularly if adverse costs cover is also
