LITIGATION FINANCING
TYPES OF LITIGATION FINANCING
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Single case financing: It provides funds on the basis of single case to the claimants, lawyers or law firms.
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Portfolio financing: It approves funds to claimant for the bunch of cases or multiple claims at one go.
The litigation financing process is regulated by the Reserve Bank of India and other relevant authorities. The documents needed for litigation financing in India may include:
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Case documents including the complaint, pleadings, evidence, and other legal documents related to the case.
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Identification documents: such as passports or Aadhaar cards, to verify their identity.
Workflow of the procedure of litigation financing:
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For Initial, We evaluate the merits of the case and the potential recovery. A review of the legal documents, balance sheets, cash flow statements and financial statements.
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As the litigation funder may request a legal opinion from the company's lawyer or a third-party legal expert, we will provide the legal opinion document to assess the strength of the case and the likelihood of success in court.
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If the litigation funder decides to move forward with the financing, We provide a Litigation funding agreement which outlines the terms and conditions of the funding agreement, amount, repayment terms, and the share of the settlement or award that the funder will receive.
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Once the funding agreement is signed, the litigation funder disburses the funds to the company or the law firm. The funds may be used to cover legal fees, court costs, and other expenses related to the litigation.
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The litigation funder monitors the progress of the case and provide guidance or support to the company or the law firm and also be involved in settlement negotiations.
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If the case is successful, the company pays back the litigation funder according to the terms of the funding agreement.
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If the case is unsuccessful, the funder typically bears the loss and does not receive any repayment.