For a variety of different reasons, many people seek out both non-traditional and novel investments to add to their growing portfolio.
Litigation finance, otherwise known as litigation funding, is a relatively small but fast-growing investment trend for those investors that aim to capitalize on the developing sphere of arbitration and litigation.
Litigation funding in a nutshell
Generally, one would imagine that arbitration or a lawsuit only affect the parties involved and those that represent them. While this is correct, if one party wants to litigate another in a court of law or take them to arbitration, there are usually costs upfront that have to be accounted for.
The false assumption that many people have is that all attorneys provide their services on contingency, meaning they will only be financially compensated if their client wins. Obviously, this is simply not true.
In certain countries, it’s not even possible to receive representation on contingency because of laws that essentially render the practice illegal.
In an effort to expedite certain cases where the parties involved lack the necessary funds to cover the cost of legal services, many financiers now provide something called litigation financing, whereby they invest in a case in exchange for a certain percentage of whatever is awarded should the party in question win their case.
On the other hand, the fund takes a loss on its investment should the party in question lose the case.
While there are those that see litigation funding as a predatory practice and say it dishonors the legal system in general, there are others who champion litigation funding as an innovative approach that actually helps to perpetuate a more egalitarian structure.
Unfortunately, the option of litigation funding has not always been available to many litigants and the practice thus far is only been in place in Australia, the United States and the UK, and only up until recently has it begun in Hong Kong and Singapore. It makes sense that these locations would provide the primary focus in litigation funding as they are the main arbitration and financial centers in the realm of global commerce.
It is the likely, however, that we will begin to see an expansion of litigation funding in other countries, as the prevalence of consumer action suits and class action suits begins to rise in other parts of the world. Some websites even provide crowd-funding services to help financially distressed litigants provide for their court costs.
Is litigation funding right for you?
While funding someone else’s lawsuit for the chance to possibly profit from it may appear predatory to some, there are many who argue that, in fact, litigation finance assists cash-strapped individuals fight justifiably for court claims in situations where they would otherwise not be able to cover the cost of their required legal fees.
“In an increasingly litigious world, individuals feel the need to assert their rights when they feel they’ve been justifiably wronged. Unfortunately, arbitrators and lawyers cannot simply provide their services for free”, explains Richard Meyer Cayne of Meyer International in Bangkok, Thailand. “We can assist in leveling the playing field for all parties involved in litigation and arbitration while simultaneously providing investors an opportunity to help cover costs and possibly turn a profit off their investment”.
But which firm should you ultimately invest in? Are you able to cherry-pick which cases you invest in or are you compelled to join a pool? Does your jurisdiction even allow for litigation financing?
These are important questions you need to ask yourself before deciding if litigation financing is right for you. That’s why a trusted financial expert like Richard Meyer Cayne of Meyer International can help you assess the strategies and options available to you in the world of litigation funding.
Richard Meyer Cayne
Richard Meyer Cayne of Asia Wealth Group Holdings, the Meyer Group, Meyer Asset Management and Meyer International Ltd has been involved in wealth management planning for decades. Originally born in Montreal Quebec, Canada, he later relocated to Tokyo, Japan for over 15 years and now resides in Bangkok, Thailand. While he runs the Meyer Group and serves as the high credibility CEO of Asia Wealth Group Holdings Ltd, a London, UK Stock Exchange-listed Financial Holdings Company, as well as the Managing Director of the Meyer Group of Companies www.meyerjapan.com. and has additionally been the managing director of multiple organizations that specialize in helping high net worth individuals with succession planning .
Having worked with clients all over the globe with everything from portfolios to bonds to mutual funds to offshore investing to investing in retirement for your golden years, Richard Cayne of Meyer International can help you invest the right way and protect your cash. Richard has been a financial advisor involved in wealth management planning solutions and asset management in Asia for over 25 years and while living in Tokyo, Japan, he assisted many high net-worth Japanese families create innovative international tax and wealth management planning solutions. The financial holding public company of which he is CEO can be seen at Asia Wealth Group Holdings Ltd or the stock exchange link:
https://www.aquis.eu/aquis-stock-exchange/member?securityidaqse=AWLP Asia Wealth Group Holdings Ltd – Richard Cayne Thailand. Meyer Asset Management Ltd has been in the wealth management space since March 2000 and uses fundamental analysis along with modern portfolio theory.
His image worldwide as a professional advisor has been sterling and he maintains a firm command and understanding of all things finance-related.
