The use of litigation financing is increasingly and becoming more important to the business of law according to new research.
Burford Capital’s survey of lawyers and financial professionals at law firms in Australia, the UK and the US shows that 70% now regard it as a growing an increasingly important part of the business of law.
More than half of respondents (59%) said that their use of litigation finance has increased in the last two years. Around half of respondents intend to increase its use in the next two years with those in law firms (57%) more likely than in-house lawyers (47%) to say that.
“More and more often, clients and law firms are turning to litigation finance as a solution to some of the intractable challenges and pressures of managing legal cost and risk, and that strong demand is driving dramatic growth,” commented Christopher Bogart, Burford’s CEO.
Burford’s survey also shows that concerns over financing leading to unnecessary litigation fell to 10% of respondents from 81% five years ago. Ethical concerns were expressed by just 9%.