Private Law Theory

ABSTRACT
Litigation financing of plaintiffs by financiers other than the law firms representing the plaintiffs in the litigation is now a multi-billion-dollar industry. Contrary to assertions by advocates for such litigation financing, such litigation financing does not increase fairness and justice to poor and middle-class victims. Instead, it creates substantial problems beyond any associated with standard contingent-fee agreements between plaintiffs and the lawyers who represent them. This article describes the multiple ways in which the litigation-financing industry harms poor and middle-class tort plaintiffs and generates inefficient uses of judicial resources and jurors’ time. It then recommends actions that courts can take to reduce those problems.

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Malcolm E Wheeler and Theresa Wardon Benz, Litigation Financing: Balancing Access with Fairness, Journal of Tort Law, https://doi.org/10.1515/jtl-2020-2007. Published online: 4 November 2020.

First posted 2020-11-05 10:43:41