Over the past few years, the global litigation funding industry has gained traction because of numerous key factors, together with growing awareness of litigation funding and the provision of new asset classes. In addition, more applicants and a better knowledge of third-party funding also contribute to this growth.
Applications of litigation funding:
Litigation funding is extensively used in many legal areas and provides financial support to plaintiffs in various legal disputes. Various fields usually benefiting from litigation funding include:
Personal injury:
Lawsuits for personal injuries often result in large medical expenses, lost wages, and other financial hardships. Litigation funding can help plaintiffs pay their daily living costs and ongoing clinical costs during court cases, therefore offering them the necessary monetary stability to retain their claims.
Commercial litigation:
Companies involved in complex business disputes often nееd large sums of money to pay legal fееs, еxpеrt witness fееs, discovery costs, and other litigation costs. Litigation funding еnablеs companies to pursue such disputes without draining their financial resources, guarantееing that they obtain monetary support for long-term legal procееdings.
Class action lawsuits:
Class action lawsuits involve multiple plaintiffs in a single lawsuit, often against companies or organizations. Litigation funding can be used to cover the costs of legal representation, court expenses, and case management, allowing the plaintiffs to pursue justice together as a group.
Arbitration and international disputes:
Litigation funding is not limited to traditional litigation. It can also be used for alternative dispute resolution mechanisms such as arbitration or international disputes. Funding can help to cover the costs associated with hiring qualified arbitrators, lawyers, or experts in specific areas.
Environmental and mass tort litigation:
Environmental lawsuits involving many plaintiffs harmed by a particular product or environmental danger can result in high costs. Litigation funding contributes to the equalization of the situation by providing financial support to people or communities seeking compensation for harm caused.
FightRight Technologies, a start-up specializing in litigation funding, has recently launched a Rs 100 crore fund exclusively intended for high-net-worth individuals-
The Fund aims to provide financial support to persons and groups involved in legal disputes to allow them to go after legal proceedings without the initial financial burden. FightRight's pioneering tactic uses artificial intelligence (AI) and machine learning-based analytical technology to assess the feasibility of legal proceedings and to promote the efficient allocation of funds.
To take advantage of the growing importance of litigation funding in India, the Fund aims to provide high-net-worth individuals with the opportunity to diversify their investments in sectors that contribute to the expansion of the litigation funding sector. The company’s emphasis is on using technology for the evaluation of cases from different corporations in making legal funding and provides an effective and evidence-based approach to help with legal complaints.
In conclusion, the growing importance of litigation funding can be attributed to the increasing complexity of legal disputes, technological advancements, and widespread contributions from prominent companies in the field. This sector has a key role to play in providing people and businesses with the financial way necessary to pursue justice and achieve advantageous legal outcomes.
Author’s Bio: Harshada Dive is a computer engineer by qualification. She has worked as a customer service associate for several years. As an Associate Content Writer, she loves to experiment with trending topics and develop her unique writing skills. When Harshada's not writing, she likes gardening and listening to motivational podcasts.
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