Author: Jose Pienknagura
Litigation funding is a controversial tool for supporting legal disputes, in which a third party provides funding to the plaintiff in a legal dispute in return for a share of the proceeds if the case is successful. In 2023, third-party funders invested $15.2 billion in the US, with expectations of reaching $31 billion in the next five years. However, the lack of regulations has raised concerns about high interest rates, case prolongation and interference in attorney-client relationships. The construction industry has seen an increase in litigation funding due to economic downturns, arbitration proceedings and potential higher returns.
This paper aims to explore the impact of litigation funding on the construction industry.
