This coming year, economic turbulence is unlikely to slow the growth of commercial litigation finance. Disputes still need to be adjudicated by juries and arbitrators, at enormous cost.
That cost is increasingly being shared in larger business-to-business commercial disputes by litigation finance professionals, as small, medium, and large companies contend with our prohibitively expensive legal system.
Last year, courts returned to normal, and a handful of new funders entered the market, while investors reportedly began to slow their capital investments to unproven teams.
No scandals popped up among sophisticated commercial funding groups, nor did the federal committee on the rules of civil procedure enact any disclosure requirements in district courts.
The sounds of silence should be weighed against the never-ending—and hard-to-defend—claims by the US Chamber of Commerce that commercial funding spawns frivolous lawsuits, poses some hypothetical national security concerns, or is mysteriously damaging to our legal system.
The litigation finance industry continues to mature and expand into more markets, solidifying its function as a viable tool for navigating access to justice.
