Finding the resources to pursue a case involving litigation can feel challenging, especially in New York City. Litigation can be financially demanding, and legal expenses can quickly add up. Many plaintiffs may feel they’re forced to settle.
Litigation funding, however, can offer relief, helping parties pursue fair outcomes without bearing the full financial burden upfront.
Kidon IP, founded by Attorney David L. Cohen, understands the financial challenges that clients face in litigation and works to support individuals and businesses with funding solutions tailored to their needs. We serve clients worldwide and strive to connect them with resources that can support their pursuit of justice.
We’re here to help you explore options in litigation funding, so you’re not sidelined by financial limitations. We encourage you to reach out to discuss how litigation funding can make a difference in your case. Below, we’ll cover what litigation funding is, how it works, and the advantages it offers to plaintiffs.
A Rundown of Litigation Funding
Litigation funding, sometimes referred to as legal financing, involves third-party support for plaintiffs who lack the resources to cover legal expenses. In a litigation funding arrangement, an outside funder provides capital to the plaintiff, covering costs like attorney fees, court filing fees, and other legal expenses.
This funding is typically non-recourse, meaning that if the plaintiff loses the case, they’re not obligated to repay the funds. This financial support enables plaintiffs to pursue litigation without having to worry about upfront costs.
Instead, plaintiffs can focus on building a strong case, giving them a fair chance to seek appropriate compensation. In many cases, litigation funding can help level the playing field, especially for individuals or smaller businesses facing well-resourced opponents.
As we work with clients to explore funding options, our goal is to see that litigation remains accessible and effective. By collaborating with Kidon IP, you gain access to guidance on finding funding sources suited to your case’s needs.
How Litigation Funding Works
The litigation funding process generally begins with an assessment of the case's merits. Funders evaluate factors such as the strength of the case, potential settlement amounts, and the likelihood of success. This evaluation helps funders determine the level of risk and the amount of funding they can provide.
Plaintiffs typically work with their attorneys to submit relevant documents to funders, including evidence and case details. Once approved, plaintiffs receive the agreed-upon funds, which can be used to cover a variety of legal expenses.
Litigation funding can be structured in different ways depending on the case and funder, with repayment terms agreed upon in advance. Repayment usually only occurs if the case results in a favorable outcome for the plaintiff, aligning the funders’ interests with the plaintiff’s success.
This funding model allows plaintiffs to focus on their cases without financial distractions. With access to necessary resources, plaintiffs have the opportunity to present their strongest arguments in court, increasing the chance of favorable outcomes.
If you’re interested in exploring litigation funding, we can discuss the specific funding structures available and put together a solid approach for your case.
Advantages of Litigation Funding
Litigation funding offers several benefits that make it an attractive option for plaintiffs. Some of the key advantages to consider include:
Reduced financial burden: Litigation funding covers essential legal expenses, relieving plaintiffs of financial stress during what is often a challenging time. By removing immediate financial obstacles, plaintiffs can focus on building a solid case without sacrificing quality due to budget constraints.
Access to high-quality representation: With funding support, plaintiffs can retain experienced attorneys without worrying about upfront costs, allowing them to focus on achieving a positive outcome.
Opportunity to avoid early settlements: Litigation funding gives plaintiffs the financial flexibility to pursue their cases fully rather than settling prematurely due to financial constraints.
No repayment if unsuccessful: Most litigation funding is non-recourse, so plaintiffs aren’t required to repay if they don’t win, reducing the financial risk associated with pursuing litigation.
Each of these benefits contributes to a more balanced legal experience, where plaintiffs can pursue justice on equal footing. Litigation funding aligns the interests of the plaintiff, funder, and attorney, encouraging thorough and effective case preparation.
With these advantages in mind, it’s important to carefully evaluate key considerations when selecting a litigation funding option to secure the best fit for your case needs and goals.
Key Considerations When Choosing Litigation Funding
When evaluating litigation funding options, plaintiffs should consider a few important factors to make informed decisions. Aspects that can influence the suitability of a funding arrangement include:
Fees and repayment terms: Understanding the fees associated with funding is essential. Funders typically charge a percentage of the final settlement, so it’s important to understand these terms in detail.
Funding amount: Different funders may offer varying amounts of capital, which can impact the resources and representation available to you throughout the litigation process.
Experience of the funder: Reputable funders have experience in evaluating legal cases, so working with an established funding provider can contribute to a smoother process.
Flexibility of the agreement: Each case is unique, and funding terms may vary. Some funders offer more flexible repayment options than others, depending on the specifics of the case.
By considering these factors, plaintiffs can select funding that aligns with their needs and maximizes their potential for a favorable result. We’re here to discuss these options in detail, helping clients identify the funding arrangements that support their legal objectives.
With a clear understanding of funding options, plaintiffs can next assess the types of cases that may be eligible for litigation funding, allowing them to make informed decisions about their legal strategy.
Types of Cases That May Qualify for Litigation Funding
While litigation funding is available for various types of cases, it’s particularly well-suited for certain types of legal disputes. Common types of cases that often qualify for funding include:
Intellectual property (IP) litigation: For plaintiffs involved in patent or trademark disputes, litigation funding can provide resources to cover extensive legal and technical expenses.
Commercial disputes: Business-related cases, such as breach of contract or antitrust matters, often require substantial funding due to their challenges. Securing funding can empower plaintiffs to pursue these claims more confidently.
Class action lawsuits: Funding can be invaluable in class action cases, which often involve lengthy legal processes and high costs. It allows plaintiffs to pool resources, strengthening their collective case.
Employment claims: Individuals pursuing employment claims, especially against large companies, may benefit from financial support to balance the scales.
These case types are typically well-suited for litigation funding due to the potential for high settlements or judgments. By evaluating the nature of each case, Kidon IP can help clients determine their eligibility for funding and connect them with funders experienced in handling similar claims.
Frequently Asked Questions
What is the cost of litigation funding? Litigation funding costs vary depending on the case and funder, typically based on a percentage of the final settlement or judgment.
Is litigation funding only for large cases? While often used in substantial cases, funding is available for cases of various sizes, depending on the estimated value and likelihood of success.
Can plaintiffs seek funding at any stage of their case? Yes, plaintiffs can seek funding at different stages of litigation, although earlier applications allow for a broader range of options.
How does litigation funding impact the attorney-client relationship? Litigation funding doesn’t interfere with the attorney-client relationship, and funders typically work independently from legal counsel.
What happens if the case doesn’t succeed? In most cases, litigation funding is non-recourse, meaning plaintiffs won’t have to repay if they don’t achieve a favorable outcome.
Contact Us if You Need Litigation Funding
If you’re considering litigation funding and would like more information, we welcome the opportunity to discuss your options in detail. We’re here to help you explore litigation funding to meet the demands of your case. Contact us today at Kidon IP to see how we can support your litigation journey.