If you spend much time watching local television during mid-morning or late at night, you've likely learned to tune out the multiple attorney and law firm advertisements promising you financial justice when you've been harmed, reluctant to enter into a contingency fee arrangement that may not be to your benefit. Fortunately, a rise in the number of litigation funding companies may provide you with another option when it comes to bringing a civil case to trial. Read on to learn more about when litigation funding may be necessary – or even the ideal choice – when you want to pursue a lawsuit. 

How does litigation funding work?

Litigation funding bears some similarities to a contingency fee but involves a third-party funding company that employs attorneys and legal experts to sift through available evidence and determine your claim's likelihood of success. If your claim is a good one, the funding company will partner with a law firm, such as Law Office of Daniel E Goodman, LLC, (either selected by you or by the funding company) to finance investigation and discovery costs to get your case in a good posture for trial as quickly as possible. Once the case has resolved, your law firm and the funding company will sort out fees and remit the bulk of any judgment to you as the successful plaintiff. 

When could litigation funding be worthwhile for your case? 

If you live in a state that puts some heavy restrictions on attorneys' ability to enter contingency fee arrangements and you don't have the funds to pay legal fees for years or even decades before you ever see the inside of a courtroom, litigation funding may be the best way to get your case to trial. In other situations, you may be part of a larger aggrieved group of people, necessitating a class action lawsuit. Litigation funding firms are often a crucial part of this process, as they have the resources needed to help track down additional potential plaintiffs (through nationwide advertising or other means) and make logistical arrangements that may not be within reach of most law firms.

Litigation funding companies also have unique abilities when it comes time to collect on a judgment. Often, winning at trial is only the first part of the battle – once you have your legal judgment, you may struggle when it comes time to turn this judgment into cash. By partnering with a litigation funding company, you'll ensure that these funds are remitted to you as soon as possible.