After the heavy costs of litigation and finally getting that piece of paper saying you have judgment what happens when you find the other side don’t or won’t pay? Enforcement, this may include hunting down the assets which could be cumbersome and costly. This is where litigation funding steps in and bridges the gap to assist with financing for a slice of the pie.
It is a line of work we are heavily involved in and this article is a great read on the options and obstacles from judgment to tracing assets to successful enforcement.
The litigation finance provider will cover the costs of enforcement, including legal and other costs, in return for a proportion of the damages recovered. Importantly, the claimant does not pay any fees until cash proceeds are realised. The proportion of proceeds that must be allocated to the finance provider depends on the individual details of the case. Claimants might prefer to sell a judgment rather than finance enforcement if it enables them to maintain a relationship with the defendant. Given the sometimes substantial and unanticipated cost of enforcement once a judgment is obtained, not to mention the very real risk that only a fraction of the face value of a judgment might be secured, financing specifically for enforcement will almost certainly become more widespread in the years to come.