Does Litigation Funding Pose A Threat To The Legal System?

Mar 21, 2022

As a provider of innovative litigation funding solutions, we are often asked a lot of questions about what we do and how we do it. As it’s a fast-growing sector, with lots of investors placing funds into the market, misconceptions and misunderstandings are common place.

First, it’s important to establish what litigation funding is. In its simplest from, it is a third party providing the funds for a claimant to pursue a meritorious case/claim. The third party has no control over the proceedings and all decisions concerning the case are always made by the claimant.

In exchange for funding the costs of the litigation, the litigation funder gets a share of the outcome upon success. This is agreed before funding is provided and is usually a multiple of the amount deployed or a percentage of the total recovery/damages that the claimant receives. However, should the case lose, then there is nothing for the claimant to repay.

Some claimants are concerned that litigation funding poses a threat to the legal system and access to justice. However, the opposite is true. The use and acceptance of third party litigation funding has grown in recent years and is now seen as one of the leading ways for claimants to access justice.

Over recent years there has been a gradual withdrawal of Legal Aid. Alongside this, there has also been the implementation of the Jackson reforms in the Legal Aid Sentencing and Punishment of Offenders Act 2012, also known as LASPO. The combination of these means that many are now denied the opportunity to pursue justice through the Courts by the prohibitive cost of such action.

Through the use of a third party, such as Apex Litigation Finance Ltd, claimants wishing to pursue meritorious claims are now able to do so, safe in the knowledge that they now have the means to access justice without exposing themselves to further financial risk.

If you would like to know more about litigation funding for your claim; contact our team now.


London Office

20-22 Wenlock Road, London, N1 7GU


+44 (0) 208 012 7944

ATE & Funding Broker Partners