By Gwendoline Davies
When a business faces a dispute, one of the key factors which can influence the decision whether to pursue or defend a claim is cost. Potential litigants have to weigh up not only the commercial costs of becoming involved in litigation, but also their own legal costs and, potentially, any exposure to pay the opponent’s costs if things don’t go as planned.
In today’s market there are a number of options for financing litigation which might be available to help litigants to pursue a case that they might not otherwise be able to afford. In certain circumstances, litigation financing arrangements can therefore facilitate access to justice; they can help with businesses’ cash flow; they can provide increased certainty as to potential exposure; and they can help to spread and/or minimise cost risk.