Commercial Litigation Financing







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Aplus Legal Advice  |  2022.09.19 01:35  |  1055 views

A person who suffers a personal injury caused by another person can go in for litigation cases. Similarly, companies too are often involved in litigation. The reason can be attributed to the competitive market and unfair competition, too. Here simple disputes in the conduct of business and commercial transactions sow the seeds for litigation.



A person who suffers a personal injury caused by another person can go in for litigation cases. Similarly, companies too are often involved in litigation. The reason can be attributed to the competitive market and unfair competition, too. Here simple disputes in the conduct of business and commercial transactions sow the seeds for litigation.

The companies may reach a discord due to numerous factors. These can be a wrongful termination of an employer or employee, breach of contract, disputes of insurance, partnership, shareholders, bankruptcy, and so on. Such disputes of commercial transactions can affect the business of that company. For instance, one of the two companies involved in partnership joins hands with a third party clandestinely. There is a breach of trust and related damages caused to the other company. This cheated company can file for litigation against its partner company.

Finally, the disputing companies try to resolve their ongoing case through the court. This is known as Commercial Litigation. The companies, like individuals, take the help of an expert attorney to protect their interests. The attorney files the case for a contingent fee. The company involved in litigation, with the support of the attorney, seeks the Litigation Financing Company for its expenses. The company providing Litigation Financing evaluates the case. If the case appears worthy enough, the company offers an advance, often, termed a litigation loan. These are pre-settlement advances of non-recourse nature. That means the company gets its recovery charges if and only if its client company wins the case. But to ensure proper Commercial Litigation Financing one needs to resort to an attorney.


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