Changed my mind on litigation funding after seeing a case up close

I used to think third party litigation funding was shady. Like some vulture fund buying into someone else's fight. But then a buddy of mine got wrapped up in a breach of contract case against a supplier. He had a solid claim but zero cash to pay his lawyer past the first retainer. A fund stepped in and covered 60 grand in fees and costs. Without that money he would have had to settle for pennies on the dollar. Watching it play out, the fund didn't even meddle in strategy. They just wanted their cut if he won. Now I see it as a tool for small businesses to level the playing field. Has anyone else here had direct experience with a fund pushing bad decisions on a case?

2 comments

2 Comments

campbell.logan7d ago

Honestly I gotta push back on that. I've seen funds push for bad settlements just to get their money back faster. My neighbor's case against a landlord got funded and the fund pressured him to take 40% less than what his lawyer thought he could get. They didn't care about the principle or his long term business. They just wanted their cut and to move on. Ngl to me that's still vulture behavior even if sometimes it helps a small business.

the_rose7d ago

Wow that's a pretty fair take on it. Did the fund ever try to push for a specific settlement amount or trial date to speed things up?