Litigation Funding for Lawyers and Law Firms
Westfleet Advisors works with your law firm and your business clients to optimize commercial litigation financing arrangements. We determine whether litigation financing is a viable solution and manage the process of securing it. Because we maintain an extensive set of relationships and expertise, you can access the entire commercial litigation finance market via one source, saving time and increasing efficiency. Litigators can focus on their practices and obtaining favorable outcomes for your firm’s clients while relying on Westfleet Advisors to manage the process of arranging commercial litigation funding solutions.
What Is Commercial Litigation Funding?
This unique type of financing for commercial litigation involves third parties providing funding to your law firm or business client, secured by the recipient’s interest in a legal claim. This type of funding is repaid only upon obtaining a successful outcome of the claim. Because of this contingent-repayment feature , your law firm may be able to:
- Facilitate large litigation engagements
- Augment the firm’s capacity for alternative fees
- Strengthen client relationships
Commercial litigation finance provides your law firm with another arrow in its quiver for accommodating the business needs of your clients. From the client’s standpoint, litigation funding functions much like a contingency fee engagement. Rather than a drag on your client’s financial performance, large litigation expenditures are deferred to the successful resolution of a claim, essentially providing your client a mechanism for tying the amount of their litigation expenditures to their satisfaction with litigation outcomes. With litigation finance, your partners can offer these contingency economics without asking your law firm to exceed its appetite for sharing risk in complex litigation engagements.
Perhaps the most common misconception among litigators about litigation finance is that it only applicable to smaller clients lacking the resources to fund large litigation budgets. In reality the utilization of commercial litigation finance is becoming much more common among larger corporate clients because it offers unique features and benefits that are applicable to both small and large companies:
- Preservation of capital
- Reduction of budgetary pressures
- Increased P&L predictability
- Mitigation of litigation outcome risk
- Expanded options for working with preferred law firm
Lawyers who are knowledgeable about the litigation finance market are able to offer their clients greater alternatives for managing legal budgets. Not only can these alternatives facilitate an engagement, they also demonstrate creativity, expertise, and sensitivity to your clients’ business issues, all of which serve to strengthen client relationships. Westfleet Advisors helps your litigators and other professionals in your firm to become more conversant on the subject of commercial litigation finance so that they are able to unlock the market’s full potential.
Litigation finance may be used for a variety of purposes, and each transaction is individually negotiated and customized. Click here to learn more about the opportunities commercial litigation financing offers your law firm. Please review this list of frequently asked questions for more information.
We invite you to request a more detailed consultation by contacting us directly or calling (615) 312-8255.