Commercial Litigation Financing

A person who suffers a​ personal injury caused by another person can go in​ for litigation cases. Similarly, companies too are often involved in​ litigation. The reason can be attributed to​ the competitive market and ‘unfair competitions,’ too. Here the simple disputes in​ the conduct of​ business and commercial transaction sow the seeds for litigation.

The companies may reach a​ discord due to​ various factors. These can be a​ wrongful termination of​ an​ employer or​ employee, breach of​ contract, disputes of​ insurance, partnership, shareholders, bankruptcy and so on. Such disputes of​ commercial transactions can affect the business of​ that company. For instance, one of​ the two companies involved in​ partnership joins hands with a​ third party clandestinely. There is​ a​ breach of​ trust and related damages caused on the other company. This ‘cheated’ company can file for litigation against its partner company.

Finally, the disputing companies try to​ resolve their ongoing case through the court. This is​ known as​ Commercial Litigation. The companies, like the individual, take the help of​ an​ expert attorney to​ protect their interest. The attorney files the case for a​ contingent fee. The company involved in​ litigation, with the support of​ the attorney, seeks the Litigation Financing Company for its expenses. The company providing Litigation Financing evaluates the case. if​ the case appears worthy enough, the company offers an​ advance, often, termed as​ litigation loan. These are pre-settlement advances of​ non-recourse nature. That means the company gets its recovery charges if​ and only if​ its client company wins the case. But to​ ensure proper Commercial Litigation Financing one needs to​ resort to​ the attorney.

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