Every year since 2017, Lake Whillans and Above the Law have asked in-house counsel and law firm attorneys to share their perspectives on third-party litigation funding. The most recent survey results underscore the extent to which litigation finance has become an established feature of the industry landscape as a means of managing risk and reducing pressure on a company’s legal budget.
Three years ago, we witnessed a watershed in the field’s development, when the percentage of attorneys who had firsthand experience with litigation finance jumped nearly 30 points, from 41 percent to 70 percent. Since then, the proportion of respondents reporting direct experience with litigation funding has remained above 60 percent.
This year, more than 90 percent of these respondents said they would use litigation finance again. And nearly 70 percent of all respondents said that litigation finance has become more relevant to their practice in the last year. As one attorney explained, “Companies are looking for creative ways to cut costs and hedge litigation expense and risks.”