Dealing with litigation is hard, especially when you don’t have enough funds in your hands. Aside from that, no one can tell how much time and money it’ll take for legal matters to get reasonable settlements. Thus, most individuals/businesses give up on seeking justice after a certain period. But do you know that with the help of dispute financing options, you can fight for your rights and get better legal assistance for a fair settlement? Legal funding or financing allows you to finance your legal issues through a 3rd party and deal with the litigation with someone else’s investments. And the best part is that if you lose the case, you don’t have to owe them anything.
But is litigation funding all about helping people seek justice when they don’t have enough funds? Well, NO. As per the latest research, the global market of litigation financing is expected to grow by 13.14% (CAGR 2023 – 2035) and reach up to USD 57.2 billion by 2035. Thus, 3rd party litigation financing has strengthened the traditional client-attorney relationship.
Wondering how can it do so? Let’s explore that in the below blog post.
3 ways adept dispute financing options are strengthening the relationship between clients and lawyers
Litigation financing is one of the most vital things in litigation cases. Individuals or businesses who can’t afford to handle a legal issue can benefit from 3rd party litigation funding options. Alongside that, professional dispute financing options can also help law firms and lawyers deal with more complex cases and improve their business models.
Here are the top 3 ways it can help strengthen the relationship between customers and lawyers,
1. It helps arrange the hybrid fee structure.
Lawyers usually charge an hourly or contingency fee, which they’re paid for the time they spend on the matter. Since it’s regards to whether the litigation succeeds or not, the longer it takes for the case to resolve, the more the lawyer will charge you.
But when the case is funded by a 3rd party dispute financing source, the lawyer won’t completely work on a pure hourly/contingency fee. Rather than that, here, the funder introduces a hybrid fee that contains both the feature of hourly and contingency fees.
Here, the dispute financing funder pays only a portion of the lawyer’s hourly fees (e.g., 50%) and further offers the law firm a moderate contingency fee. Thus, the lawyer gets compensated in 2 different ways: partly on the hourly fees and partly on the contingency fees.
2. It helps reduce the costs for agencies.
If an individual or business pays both hourly and contingency fees to a lawyer, they’ve to spend lots of funds on the agencies. While the hybrid formula from 3rd party dispute financing options is the better way to do so.
It’s been shown that the hybrid formula where the lawyer’s hourly fee along with the contingency fee can reduce the agency costs compared to the lawyer’s hourly or contingency fees alone. The 3rd party dispute financing model’s formula pits the hourly and contingent percentages against each other and thus, improves upon them both.
Thus, if the hourly fees of the lawyers are paid and set correctly by a 3rd party funding source can perfectly align the client’s interests and the lawyer’s incentives.
3. It helps align lawyers’ and clients’ interests better.
Though dispute financing funders invest in litigation cases, they can’t control the outcomes as per the legal ethics rules. So, they’ve to be careful when structuring everyone’s payout ensuring that neither the litigant nor the attorney can take advantage of them. Thus, they attempt to align both the lawyer’s and client’s interests as closely as possible.
Can’t decide how to deal with a legal matter without sufficient money in your hands? Well, getting help from professional dispute financing options can help you. By implementing a hybrid formula, it can also strengthen the relationship between the clients and lawyers. We hope this blog will be helpful for you.
Author Bio: The Author is a professional litigation funder. For years, he’s helped many people finance their cases with professional dispute financing options. Also, he’s written many articles and blog posts on the same.
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I am a passionate blogger. I love to share my thoughts and ideas through blog posting. I have five years of experience in Tech, Business, & Health. I am associated with,,,.