US lawyers get a taste for litigation funding
Once tried US lawyers are positive and say they would try litigation funding again says survey.
While over two-thirds of respondents say litigation funding is a disruptor, 98 percent of lawyers who previously used litigation funding would do so again, survey finds, though they have “lingering ethical concerns.”
Disruption and ethics
Key findings in the reports include: 93 percent of law firm respondents who have used funding reported a positive experience and 98 percent would use it again; 27 percent of lawyers who have used funding have lingering ethical concerns, the biggest being client confidentiality and privilege; 70 percent of respondents believe litigation finance is a key disruptor in the legal industry with 50 percent of respondents believing funding has been used against them. “We believe it’s important to understand what clients really need and want from litigation finance, which is why we conducted a survey that focused on client needs rather than on the growth of the industry or the amount of capital flowing into it,” explained Dave Kerstein, chief risk officer, Validity Finance. “Thanks to ALM’s expertise and partnership, we think these reports will deepen our industry’s understanding of how we can better serve businesses and the legal profession.”
ALM Intelligence and Validity Finance partnered to survey US lawyers on their experiences using litigation finance in early 2019, polling 330 lawyers in total. The reports provide insight into the status of litigation finance in the U.S. and examine lawyers’ perceptions of legal financing as a mechanism for promoting access to justice, risk mitigation, and profitability. “Our mission is to promote a better understanding of the business of law,” said Steve Kovalan, director of research, ALM legal intelligence. “For that reason, we couldn’t be more excited about our partnership with Validity in conducting this unique study that dives deep into the litigation finance client experience.” The survey results are being released in three separate reports: an overview of the complete study, along with results specific to both law firms and legal departments. The reports can be found here.
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