A study carried out by Burford Capital highlights the problematic scenario faced by a large number of claimants who succeed in litigation but are unable to make a recovery in full or in part after the award of damages. This is estimated to equate to billions of pounds of unsatisfied judgments and highlights the need to have a strategy in place for both legal action but also, crucially, the recovery of assets if you are successful. One option to consider is litigation finance specifically to deal with enforcement of judgments and turn write-offs into revenue.
Given the significant challenge that so many clients face in transforming ‘legal paper‘ into the full value of their opponents’ judgment debts, we predict that this emerging form of financing will soon become mainstream. Just as in the more familiar types of litigation finance, an outside funder might be prepared to fund the legal and other associated costs of enforcement in return for a percentage of the damages recovered