In Litigation Finance Journal, John Freund explains what happens when a winning client refuses to meet obligations to funders.
The business model of most litigation funding agreements is straightforward. A funder provides the financial means for a client to pursue a case. If the client wins, they pay an agreed-upon percentage to the funder, usually in addition to the amount of funds provided. If the plaintiff doesn’t win, the funder is out the money. All of this is spelled out in contracts signed by involved parties. So how then can a winning plaintiff pretend they owe nothing to funders…Read more