News
Litigation funding and legal accessibility
Introduction
Litigation funding, also known as third-party funding, is emerging. It offers opportunities for individuals and groups who otherwise would not have the financial means to pursue a lawsuit. In this blog, we explain what litigation funding is and discuss recent developments, its impact, and considerations.
What is litigation funding?
Sometimes, individuals or businesses face financial difficulties due to the legal assistance they need. The costs of legal proceedings have significantly increased over the years. This, together with the unpredictability of the outcome, can deter an individual or business from filing or continuing a lawsuit, even if there is a good chance of success.
Third-party litigation funding provides these parties with the opportunity to pursue such a lawsuit, something that would otherwise be unattainable. Litigation funding enhances the accessibility of the legal system and ensures a level playing field for everyone. It allows plaintiffs to file a lawsuit without financial risk, as the funding party covers the costs of lawyers, court fees, and other expenses. In return for providing funding, the litigation funding party receives a portion of the revenue if the case is successful (for example, a percentage of the damages or settlement amount).
Recent Developments
Several recent developments are noteworthy:
- Dutch Settling of Large-scale Losses or Damage (Class Actions) Act (WAMCA): The introduction of WAMCA has created a new legal avenue that supports litigation funding in collective actions for mass damages. It has opened doors for groups of consumers and small businesses to jointly file claims against large corporations in cases of mass damages, significantly lowering the barrier to justice.
- Increase in litigation funding parties: There has been an increase in the number of specialized litigation funding parties in the Netherlands. These parties focus on supporting lawsuits for individuals and businesses. This development provides greater choice for those with limited budgets to litigate.
- Legal reforms: The Dutch government has announced plans to further regulate the use of litigation funding and is exploring ways to improve and refine the practice. These reforms could enhance the transparency and integrity of litigation funding in the Netherlands, while continuing to promote accessibility to the legal system.
HEUSSEN and Liesker Procesfinanciering
For some time, HEUSSEN has had a strategic partnership with ‘Liesker Procesfinanciering’, the market leader in the Dutch legal market for litigation funding. Through this collaboration, HEUSSEN’s clients have the opportunity to have a promising lawsuit funded by Liesker.
About Liesker Procesfinanciering
Liesker Procesfinanciering, based in Breda and founded in 2011, focuses on funding promising claims, both from individuals and companies, with a minimum value of €500,000. The procedure is handled by external lawyers (firms). If the case is won, the litigation costs are paid from the proceeds, and the remaining amount is divided between the client and the financier according to a 70/30 split. In the event of a loss, the claimant is exempt from costs. Most of the cases financed by Liesker involve business disputes. Liesker has various specializations: cartel damages, intellectual property, and family law. Other specializations are sourced from their existing network of top lawyers. Liesker is the market leader in the Netherlands with an equivalent office in Brussels for the Belgian market.
www.liesker-procesfinanciering.nl
www.liesker-procesfinanciering.be
