Third Party Litigation Funding For Lawsuits

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Pursuing a strong legal claim shouldn’t come down to whether you can afford to fight. Third-party litigation funding helps bridge that gap by giving plaintiffs and law firms the capital needed to move forward, even against well-funded opponents. It allows you to cover legal costs, expert fees, and other expenses, without putting your own resources on the line.

At REMO, we’re committed to making litigation funding ethical, efficient, and empowering. We work with businesses, individuals, and firms to support valid claims across various commercial disputes. From intellectual property cases to complex contract litigation, third-party funding helps reduce financial pressure and lets you focus on results. As more legal systems around the world recognize and accept this model, REMO’s role is to help you navigate the process with transparency, deep industry expertise, and a commitment to your long-term success.

How Does Third-Party Litigation Funding Work?

Third-party litigation funding involves a third-party entity, such as a litigation finance firm, providing money to a party pursuing a legal claim. The third-party funder assesses the merits of the case and the likelihood of success before providing financing. If the case succeeds, the funders receive a portion of the eventual settlement or judgment. If the case is unsuccessful, the third-party funder absorbs the financial loss.

What Are the Benefits of Third-Party Litigation Funding?

Third-party litigation funding has transformed how claimants pursue legal action, especially in complex or high-stakes disputes. It removes financial barriers and gives you the freedom to litigate based on the strength of your case, not the depth of your pockets.

Access to Justice

Funding helps ensure that strong claims aren’t sidelined due to a lack of capital. It also opens the courtroom to individuals and businesses who might not otherwise be able to afford legal representation, leveling the playing field for those with legitimate grievances.

Financial Risk Management

Because the funding is non-recourse, you take on no repayment risk if the case doesn’t succeed. This allows you to pursue litigation without the fear of sinking resources into a case that may not pay off.

Levels the Playing Field

Defendants with large legal budgets often use their financial advantage to pressure plaintiffs into settling early. Third-party funding gives you the staying power to push back and litigate from a position of strength.

Complex Case Support

High-value cases often require expert testimony, e-discovery, and extensive legal resources. Third-party funding makes it possible to pursue these cases with the resources they truly require, without having to compromise on strategy due to cost.

Are There Any Downsides to Third-Party Litigation Funding?

While third-party funding has opened the door for more plaintiffs to pursue valid claims, it’s not without its complexities. It’s important to understand the potential challenges so you can make an informed decision that aligns with your legal strategy.

Encourages Frivolous Litigation

Some critics argue that funding might lead to speculative lawsuits, but in reality, most funders are highly selective. Since they only profit from successful outcomes, they perform rigorous due diligence and only back cases with strong legal merit. That means weak or frivolous claims typically don’t get funded.

Attorney-Client Relationship Interference

Introducing a third-party investor into a case can raise concerns about outside influence. That’s why it’s essential to work with a funder who respects professional boundaries and does not interfere with your attorney’s independence or judgment.

Undue Case Influence

Worries about funders steering litigation decisions are valid, but well-drafted funding agreements clearly define roles and responsibilities. A reputable funder will never direct legal strategy but will ensure their investment is aligned with your best possible outcome.

Potential Conflicts of Interest

Any time financial interests are involved, ethical questions can arise. Choosing a funding partner who prioritizes transparency and respects the legal process is key to avoiding conflicts between your goals and theirs.

How to Choose a Third-Party Financing Company

Choosing the right funder is more than just comparing rates, it’s about finding a partner who aligns with your case, values, and long-term strategy.

Track Record Review

Look into the funder’s experience. How many cases have they funded? What’s their average approval time? What outcomes have they supported? A solid track record helps you feel confident that they understand both the risks and realities of litigation.

Transparent Fee Structure

You should know exactly what the funding will cost. Choose a company that’s upfront about fees, timelines, and how returns are calculated. Avoid vague terms or hidden costs that could eat into your recovery.

Industry Reputation Assessment

Ask around. Read reviews, check for affiliations with professional organizations, and speak to past clients if possible. A reputable funder will be known for ethical practices, clear communication, and dependable support.

Case Experience Alignment

Find a funder who understands your type of case. Whether you’re handling intellectual property, commercial contract disputes, or securities litigation, working with someone who knows the terrain makes the entire process smoother and more effective.

What Documentation Is Required for Third-Party Funding Applications?

To evaluate your case, funders need a clear view of its legal merits and financial potential. Being prepared with the right documents can speed up approval and help you secure better terms.

You’ll typically need to provide:

  • A complaint or statement of claim
  • Key pleadings and motions
  • Chronology of events and legal issues
  • Expert reports or opinions
  • Estimated damage models
  • Case budget and timeline
  • Information on the opposing party’s ability to pay
  • Attorney engagement letters and fee agreements

These materials help funders assess liability, potential recovery, and collectability. The more organized and detailed your submission, the more attractive your case will be to funders, and the faster you’ll move through the process.

How Can REMO Help You With Third-Party Litigation Funding?

At REMO, we specialize in connecting strong legal claims with the right financial backing, without compromising legal integrity or client goals. Our approach to third-party litigation funding is built on transparency, precision, and respect for the legal process.

We start with a deep dive into your case, using a proven evaluation framework that combines legal analysis with financial modeling. From there, we match you with vetted funders who understand your type of litigation and can offer competitive, non-intrusive funding terms.

What sets REMO apart:

  • Fast, efficient application process
  • Access to a diverse network of reputable funders
  • Tailored funding strategies for complex disputes
  • Clear, fair fee structures with no hidden surprises
  • Strict protection of attorney-client privilege and case control

Whether you're an individual plaintiff or a firm representing high-stakes commercial litigation, REMO ensures you receive the financial support needed to move forward on your terms.

Third Party Funding FAQ

Answers to some of our most commonly asked questions.

Are there any ethical considerations with third-party litigation funding?

Yes, there are potential ethical considerations with third-party litigation funding, particularly regarding conflicts of interest between the plaintiff, attorney, and funder. Some jurisdictions require transparency regarding third-party funding arrangements to address these concerns.

Can a third-party funder influence the outcome of a case?

No, third-party funders are not permitted to influence the outcome of a case, and the attorney-client relationship remains intact. However, funders may require certain conditions in the funding agreement, such as periodic updates on the case's progress.

Is third-party litigation funding legal?

Yes, third-party litigation funding is legal in most jurisdictions. However, regulations governing such funding may differ from place to place.

What happens if the case is unsuccessful?

If the case is unsuccessful, the third-party funder absorbs the financial loss and receives nothing in return.

What portion of a settlement or judgment do third-party funders typically receive?

Depending on the terms of the agreement, third-party funders typically receive a portion of the eventual settlement or judgment, usually ranging from 20 to 50 percent.

How do third-party funders assess the merits of a case?

Third-party funders use a variety of criteria to evaluate the merits of a claim, including the strength of the legal arguments, the likelihood of success, the size of the potential settlement or judgment, and the legal costs involved.

What types of cases are typically funded through third-party litigation funding?

Third-party litigation funding is typically used for cases with strong merits, high stakes, and significant legal costs. These may include commercial disputes, intellectual property disputes, mass tort litigation, and international arbitration.

Who can use third-party litigation funding?

Generally, third-party litigation funding is available to anyone pursuing a legal claim, including individuals, businesses, and organizations.