International disputes often present a complex labyrinth of legal risks and challenges.
Engaging in litigation is a daunting prospect, especially when it involves legal systems in different international jurisdictions, each with their unique procedures and laws.
This article seeks to provide an overview of the key obstacles to litigating in international disputes, and how litigation financing can offer a viable solution.
- Legal risks and the complexity of the litigation process
Litigation in international disputes often involves navigating through intricate legal landscapes. Each jurisdiction has its own specific procedural rules that govern the litigation process. Understanding these nuances is crucial to formulate a successful legal strategy and minimise potential legal risks.
- Gathering evidence and selecting expert witnesses
Gathering solid evidence and selecting a competent expert witness can be pivotal in international disputes. Evidence must be thoroughly collected, organised, and analysed to support your claims effectively. Simultaneously, selecting the right expert witness who can present complex issues clearly and convincingly can significantly influence the outcome of the case.
- High cost of litigation
Litigation, especially at an international level, can be financially taxing. The cost of litigation often includes legal fees, court costs, expenses related to evidence gathering, and fees for expert witnesses. These expenses can quickly escalate, causing financial stress and uncertainty.
Litigation funding: a viable solution
Amid these challenges, litigation financing emerges as a practical solution. By offering financial resources to pursue legal disputes, litigation funders can help mitigate the high costs associated with international litigation.
- Alleviating financial burden
Litigation financing can relieve the financial burden of litigation by covering the upfront costs, allowing the claimant to pursue justice without financial constraints. In a typical litigation funding agreement, when a claim is successful, litigation funders will be paid a percentage of the damages won, or a multiple of the amount they invested. If the claim is not successful, the litigation funder will not receive a payment.
- Reducing risks
By engaging a litigation funder, claimants can shift some of their financial risk. In most cases, if the litigation is unsuccessful, the funder absorbs the loss, thereby reducing the potential financial risk for the claimant.
- Providing expertise
Litigation funders often have a team of legal experts who can provide valuable insights and guidance throughout the litigation process. Where appropriate, this expertise can prove beneficial in helping to shape the legal strategy and navigating through the complex landscape of international disputes. Litigation funders will not exercise control over the legal claim, however.
- Enabling access to resources
Litigation financing can also grant access to resources necessary for building a robust case, including funding for comprehensive evidence gathering and expert witness selection.
Conclusion
Litigation funding presents a viable solution to the numerous challenges faced in international disputes. By alleviating the financial burden, reducing risks, providing legal expertise, and enabling access to essential resources, it allows claimants to focus on achieving a favourable outcome. As the landscape of international disputes continues to evolve, understanding the value of litigation financing becomes even more critical.
July 6, 2023
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