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Litigation Financing By: Anant Maske and Utkarsha Mehrotra (K J Somaiya Institute of Management)
Introduction We want to live in a world where peace, equality, and justice prevails. But, these come with a price which is not affordable for all. Martin Luther King Junior has rightly said that “Injustice anywhere is a threat to justice everywhere”. Today, the global population has access to justice irrespective of the region or area. However, the availability of a sufficient amount of funds to gain access to that justice is still a major barrier for a significant percentage of the global population. To address this money problem, litigation financing or third-party financing came into existence. Litigation financing is based on a non-recourse type of funding wherein the funding entity provides funds to the party for the litigation. In return, it expects a monetary reward if the litigation is successful. Litigation financing covers costs pertaining to litigations in courts, commercial contracts, personal injury claims, international commercial arbitrage, insolvency proceedings, and anti-trust proceedings.
