In this blog post, we explore key data points from a recent survey that sheds light on how GCs and heads of litigation in the mining industry manage the cost and risk of disputes, their views on the importance of legal finance solutions and the potential benefits financing offers.
Economic considerations for mining disputes
- 65% of mining companies spent over $5 million on litigation and arbitration in the prior full calendar year, highlighting the substantial financial burden these disputes impose.
- 58% of mining companies expect the economic uncertainty to lead to an increase in disputes, emphasizing the need for effective cost-saving solutions.
- 65% of mining companies cite the high costs of enforcement and recovery as a significant obstacle.
- 42% of mining companies are likely to seek cost-sharing solutions with outside counsel or an outside legal finance provider to mitigate the impact of the current economic climate.
Mining GCs see the benefits of commercial legal finance
- 96% of mining companies have previously reviewed legal finance solutions when considering pursuing meritorious claims, indicating recognition of the benefits of legal finance.
- 88% of mining companies believe that legal finance enables businesses to pursue claims and recoveries that will bring value—an important benefit.
- 77% of mining companies see the preservation of company capital and minimizing the impact of legal spend on profitability as additional important benefits of commercial legal finance.
Mining companies see the benefits of funded asset recovery
- 65% of mining companies are likely to use financed enforcement and recovery services for a pending judgment or award.
- 85% of mining companies see immediate liquidity and working capital, as well as expertise in asset tracing and recovering judgment assets, as influential benefits of funded enforcement
- 85% of mining companies consider the ease and likelihood of recoverability as an important factor in their decision to pursue litigation or arbitration claims.
The mining industry's increasing reliance on legal finance solutions reflects the need for cost-saving measures and efficient resolution of disputes. By leveraging commercial legal finance, mining companies can navigate the complexities of litigation and arbitration while preserving their financial resources. The potential benefits, such as the ability to pursue valuable claims, preserve company capital, and minimize the impact of legal spend on profitability, make legal finance an attractive option for the industry. As mining companies continue to face litigation challenges, legal finance solutions offer a strategic approach to managing costs and maximizing recoveries.