Litigation Financial Planning: Self-Finance or Third Party?

An Examination of Lawsuit Funding from a Litigation Attorney Oakland Law Firm

Lawsuit Attorney San FranciscoLitigation financing can be a hugely helpful asset for startups and small companies that may not be able to afford to hire a litigation or contracts attorney to bring a lawsuit against a third party for wrongdoing.

Prior to the availability of such financing options, companies would have to weigh the costs associated with pursuing litigation against potential awards to determine whether a lawsuit, even an eminently justified one, was a viable course of action for the business.

Today, third parties—namely hedge funds and other investors—supply worthy businesses and individuals with the cash needed to pay a business attorney to pursue certain types of legal action. On the one hand, this financing scheme allows more companies to take action against injustices without concern that the investment in litigation will damage the business or leave it without cash to pay for payroll and the daily costs of operation. On the other hand, this financing arrangement often leads to situations in which third parties take a substantial percentage of any damages awarded.

Other drawbacks of third party financing could include:

• Unnecessary or unethical lawsuits;
• A drawn out litigation process;
• A decrease in case control for the plaintiff;
• Ethical concerns for litigation attorneys.

Utilize the Services of our Business Attorney Pleasanton or Fremont Offices

Ultimately, third party financing opportunities should be assessed on a case-by-case basis. If you run a company that needs or wants to sue a vendor, supplier, customer, or former partner, but you just can’t afford to take action, call a litigation attorney at our firm at (510) 881-8700 to explore your options. Even if we cannot take your case, we can suggest resourceful ways for you to pursue justice and compensation.