Does Litigation Funding Encourage Frivolous Funding?

Mar 1, 2022

There are a lot of myths and misunderstandings surrounding litigation funding, particularly around what litigation funders do, who they support and how they can assist.

One common misunderstanding is that litigation funding encourages frivolous litigation. This is not the case and something we want to ‘bust the myth’ on in this blog post:

Most litigation finance companies are clearly incentivised to screen applications for funding focussing on the strength and merits of the claim presented, as the funder will only receive a return if the claim is successful. However, some litigation finance companies provide financing when the probability that a claimant would prevail is low, as their return is not contingent on a successful conclusion to the claim.

If a litigation finance company is charging the claimant, whether the case is won or not, then there could be reason for them to take on all claims. This is where the myth around litigation funding encouraging frivolous funding has begun.

Here at Apex Litigation Finance we know this isn’t the case for our claimants. We offer a no win – no fee arrangement on all cases. We use high quality and extremely effective case screening methods to fully understand the claims being presented for funding.

As a professional and responsible litigation funder we will only offer funding to cases that we believe have a high probability of success and have passed our rigorous screening process. Otherwise, we would be risking our money and the money of our investors on cases that are likely to lose.

Apex provides funding which enables access to justice for small to medium size cases. If you win your case, we will receive the return of our investment plus a pre-agreed success fee. If your case is lost, there is nothing for you to repay. This is why we do not believe that litigation funding encourages frivolous litigation. In fact, we believe the opposite is true as no professional funder will support a case that has more chance of losing than winning.

If you have a claim that you would like us to consider for litigation funding, then please apply directly through our website.

London Office

20-22 Wenlock Road, London, N1 7GU

Contact

+44 (0) 208 012 7944
enquiries@apexlitigationfinance.com

ATE & Funding Broker Partners