header-logo header-logo

Home Login E-newsletter About us
05 August 2020 / Simon Davenport KC , Daniel Goldblatt , Sergey Litovchenko
Issue: 7898 / Categories: Features , Profession , Covid-19
printer mail-detail

Third party funding: a litigation lifeline?

© Copyright LexisNexis 2026. All Rights Reserved.
25533
Simon Davenport QC, Daniel Goldblatt & Sergey Litovchenko on finding third party litigation funding in the age of COVID-19

In brief

  • How lawyers and their clients can best position themselves to apply for and negotiate third party litigation funding.

As the COVID-19 pandemic and economic fallout drain liquidity from businesses and individuals, self-financing lawsuits will become increasingly challenging. Meanwhile, the litigation finance industry, which has tended to be non-correlated to financial markets or counter-cyclical, is in a position to provide a lifeline. But with so much demand for cash, funders will become more discerning about which cases they back and will charge more for their services.

Third party funding, otherwise known as litigation funding or finance, is the loaning of capital by a fund or investment firm to cover a party’s legal costs, which is repayable (with a return) in the event of a successful claim. Put crudely; it is paying for litigation when a party has a good case but either cannot

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Read All
Sponsored by
London Solicitors Litigation Association—John McElroy

London Solicitors Litigation Association—John McElroy

Fieldfisher partner appointed president as LSLA marks milestone year

Kingsley Napley—Kirsty Churm & Olivia Stiles

Kingsley Napley—Kirsty Churm & Olivia Stiles

Firm promotes two lawyers to partnership across employment and family

Foot Anstey—five promotions

Foot Anstey—five promotions

Firm promotes five lawyers to partnership across key growth areas

NEWS
Read All
NLJ this week: Divorce ‘nuclear weapon’ freezes assets but entangles outsiders
Freezing orders in divorce proceedings can unexpectedly ensnare third parties and disrupt businesses. In NLJ this week, Lucy James of Trowers & Hamlins explains how these orders—dubbed a ‘nuclear weapon’—preserve assets but can extend far beyond spouses to companies and business partners 
NLJ this week: What counts as ‘rent’? Court says labour alone won’t do
A Court of Appeal ruling has clarified that ‘rent’ must be monetary—excluding tenants paid in labour from statutory protection. In this week's NLJ, James Naylor explains Garraway v Phillips, where a tenant worked two days a week instead of paying rent
Your magistrates’ court needs you!
Thousands more magistrates are to be recruited, under a major shake-up to speed up and expand the hiring process
NLJ this week: Freed but failed—justice system leaves the innocent empty-handed
Three men wrongly imprisoned for a combined 77 years have been released—yet received ‘not a penny’ in compensation, exposing deep flaws in the justice system. Writing in NLJ this week, Dr Jon Robins reports on Justin Plummer, Oliver Campbell and Peter Sullivan, whose convictions collapsed amid discredited forensics, ‘oppressive’ police interviews and unreliable ‘cell confessions’
NLJ this week: Clarity on whistleblowing, settlements and tribunal limits
A quiet month for employment cases still delivers key legal clarifications. In his latest Employment Law Brief for NLJ, Ian Smith reports that whistleblowing protection remains intact even where disclosures are partly self-serving, provided the worker reasonably believes they serve the ‘public interest’ 
Copyright © 2026 LexisNexis
back-to-top-scroll