Don’t let legal costs hold you back. Explore how Australian litigation funders can empower you to pursue legal claims and unlock opportunities

Litigation funding in Australia has evolved significantly over the years, transitioning from its traditional use in class actions to becoming a crucial tool for businesses and law firms. This shift has transformed litigation funding into what some refer to as “corporate finance for law.”

With the rise of sophisticated users of legal finance, companies are increasingly turning to Australian litigation funders like Omni Bridgeway to remove the cost and risk associated with pursuing legal claims.

The Rise of Litigation Funding in Australia

Litigation funding in Australia was traditionally associated with class actions. However, in recent years, there has been a significant shift towards using litigation funding as a tool for businesses and law firms to manage the financial risks associated with pursuing commercial litigation or arbitration.

Australian litigation funders offer a range of solutions to help businesses and law firms transform their legal departments into profit centers and access more balance sheet capital for their business. By partnering with a commercial litigation finance firm, you can mitigate the financial risks of litigation and focus on your core operations.

Understanding Litigation Funding Glossary

To navigate the world of litigation finance, familiarize yourself with some key terms:

• Litigation Funders – Entities that provide financial support to plaintiffs or law firms to cover litigation costs on a non-recourse basis. These funders specialize in litigation finance and can receive capital from various sources.
• Litigation Funding Agreement – The contract that outlines the terms of the funding arrangement between the funder and the funded party. Disclosure of these agreements varies by jurisdiction.
• Disclosure – The process of revealing the identity of the litigation funder. Disclosure can help identify any potential conflicts of interest or undue influence by the funder.
• Non-recourse – A type of funding arrangement where the borrower isn’t obligated to repay the funder if no recovery is made from the dispute.
• Portfolio Funding – A funding model where funders finance multiple cases belonging to an attorney or law firm.
• Champerty – An old English law doctrine prohibiting third parties from giving financial assistance to a claimant for a financial interest in a dispute’s outcome. While limited in some states, champerty still exists in multiple jurisdictions.
• Maintenance – Another doctrine that prohibits third parties from meddling in another’s lawsuit. Like champerty, maintenance has been limited in some states but remains in others.

The Value of Litigation Funders

Here’s why Australian litigation funders are at the forefront of the industry:

Expertise and global network

Litigation funders have a global team of lawyers and financial experts who will bring a wealth of experience and expertise to the table. These professionals have practiced law in Australia and are fully aware of the local legal landscape. By working with a legal financing funder with a strong global network, you can access a vast pool of knowledge and resources.

Diligence and efficiency

One of the significant advantages of working with Australian litigation firms is their ability to perform all diligence in-house. This means that they can quickly assess the merits and risks of a potential case and provide timely feedback.

By streamlining the process, litigation funders enable businesses and law firms to make informed decisions and move forward with their legal strategies efficiently.

Financial scale and flexibility

Australian litigation funders are publicly traded on the NYSE and LSE, which means they have the scale and financial resources to finance matters of any size through resolution. Whether you have a small commercial dispute or a large-scale litigation, litigation funders can provide the necessary capital to pursue your case effectively.

Moreover, they offer adverse cost coverage in cost-shifting jurisdictions, further reducing the financial risks for businesses and law firms.

Tips for Hiring Litigation Funders

When hiring litigation funders, it’s essential to consider factors to ensure you work with the right partner for your legal needs. Here are some tips to help you make an informed decision:

Reputation and track record

Research the reputation and track record of litigation funders before making a decision. Look for funders who have a strong history of successful cases and positive testimonials from clients.

Expertise in your industry

Consider whether the litigation funder has expertise in your specific industry.

Different industries have unique legal challenges and requirements, so it’s crucial to work with a funder who understands the nuances of your sector. This expertise will enable them to provide tailored solutions and strategic guidance throughout the litigation process.

Transparent communication and fees

Transparency is key when hiring a litigation funder. Ensure that the funder is open and honest about their fees, including any contingency or success fees.

Additionally, clear communication is essential to establish a strong working relationship and ensure you are kept informed at every stage of the litigation process.

Compatibility and trust

Building a strong working relationship with your litigation funder is vital for the success of your case. Look for a funder who shares your values and understands your goals. Trust and compatibility are critical factors that will contribute to a positive and productive partnership.

Flexibility and customization

Every legal matter is unique, and a one-size-fits-all approach may not be suitable for your case. Seek out litigation funders who offer flexibility and the ability to customize their financing solutions to meet your specific needs. This will ensure that you receive tailored support and maximize your chances of success.

Conclusion

Australian litigation funders are revolutionizing the legal finance landscape by providing businesses and law firms with the means to pursue commercial litigation or arbitration without incurring significant costs and risks. Through their expertise, diligence, and financial scale, these funders are transforming legal departments into profit centers and empowering businesses to access more balance sheet capital.

If you’re ready to explore the benefits of litigation funding, reach out to Omni Bridgeway. They will guide you through the process and help you unlock the full potential of your legal strategies.