Understanding Litigation Funding: Empowering Legal Pursuits

In the realm of legal battles, the cost of justice can often be a substantial obstacle for individuals and businesses seeking their rightful dues. This is where litigation funding emerges as a powerful solution. Litigation funding, also known as legal financing or third-party funding, has gained prominence as a means to level the playing field by providing financial support to plaintiffs in legal disputes. This article delves into the concept of litigation funding, its benefits, processes, and implications.

Section 1: What is Litigation Funding?

Litigation funding is a financial arrangement in which a third-party entity, known as a litigation financier, provides capital to plaintiffs involved in a legal case in exchange for a portion of the potential settlement or judgment amount. This allows plaintiffs, who might otherwise lack the financial means, to pursue their claims and access the justice system. The litigation funder assumes the financial risk by covering legal costs, and in the event of a successful outcome, they receive a predetermined share of the recovered amount.

Section 2: How Does Litigation Funding Work?

Litigation funding involves several key steps:

Case Evaluation: The litigation financier evaluates the merits and potential value of the legal case before deciding whether to provide funding. This assessment includes factors such as the strength of the case, potential damages, and the credibility of the plaintiff.

Agreement and Funding: Upon approval, a funding agreement is established between the plaintiff and the litigation financier. The agreement outlines the terms, including the percentage of the recovered amount that the funder will receive. Funds are then disbursed to cover legal costs, such as attorney fees, court fees, and expert witness expenses.

Legal Proceedings: The case proceeds as usual, with the plaintiff’s legal team representing them in court. The litigation funder typically does not interfere in the legal strategy but might monitor the case’s progress.

Outcome and Repayment: If the plaintiff wins the case or reaches a settlement, the recovered amount is distributed, with the litigation funder receiving their agreed-upon share. In case of an unsuccessful outcome, the funder typically bears the financial loss, as they do not recoup their investment.

Section 3: Benefits of Litigation Funding

Access to Justice: Litigation funding bridges the gap between those with limited financial resources and the legal system, ensuring that even the underprivileged can pursue valid claims.

Risk Mitigation: Plaintiffs are shielded from the financial risks associated with litigation. If the case is unsuccessful, they are not burdened with repaying the litigation funder.

Quality Legal Representation: Funding enables plaintiffs to hire reputable attorneys and experts, enhancing their chances of a favorable outcome.

Time and Effort: Litigation can be time-consuming and emotionally draining. With funding in place, plaintiffs can focus on their case without worrying about financial strain.

Section 4: Ethical and Legal Considerations

While litigation funding offers numerous advantages, it also raises ethical and legal questions. Some concerns include:

Conflict of Interest: Critics argue that litigation funding might compromise the plaintiff’s decision-making, as the funder’s interest in a substantial return could conflict with the plaintiff’s pursuit of justice.

Champerty and Maintenance Laws: In certain jurisdictions, archaic laws against champerty and maintenance (profiting from another’s lawsuit) might restrict or regulate litigation funding arrangements.

Transparency: Disclosure of third-party funding to the opposing party and the court is debated for its impact on fairness and transparency in legal proceedings.

Section 5: The Growing Popularity of Litigation Funding

The practice of litigation funding has witnessed significant growth in recent years. This rise can be attributed to:

Complex Legal Cases: As legal cases become more intricate, the costs associated with pursuing them escalate. Litigation funding offers a solution to manage these costs.

Corporate Litigation: Businesses are increasingly utilising litigation funding to manage legal expenses, especially in cases involving intellectual property, antitrust, and breach of contract.

Global Expansion: Litigation funding has expanded beyond traditional jurisdictions, making justice accessible worldwide.


Litigation funding has evolved from an innovative concept to a fundamental tool that empowers individuals and businesses to seek justice without financial constraints. By providing financial support, risk mitigation, and a path to quality legal representation, litigation funding is reshaping the legal landscape. As this practice continues to gain traction, a delicate balance between its benefits and ethical considerations must be maintained to ensure fairness and transparency in legal proceedings.

What Are the Requirements While Selecting Lawsuit Funding?

Selecting a lawsuit funding company is a lengthy process, and getting it right is of utmost importance. With the right lawsuit funding company, you can strengthen your case, boost your confidence, and raise the chances of success. There are many reasons for plaintiffs to get in touch with pre settlement loan companies; some use these companies to fund legal expenses.

Lawsuit funding is a brilliant idea if you have been injured and must pursue a lawsuit. But, with so many lawsuit funding companies out there, how will you know which one to go with? This article lists essential requirements to help you select the best company for your case.

Pre Settlement Funding

Lawsuit funding is a type of pre-settlement funding, which is a type of financing that can help you pay for your legal expenses in a pending lawsuit. The advance settlement funding company will provide the cash you need to file your case. It simply means they will lend you in advance and then they will get it back from your settlement.

Pre settlement lawsuit funding companies are becoming increasingly popular because they can help people looking for financial assistance with their legal fees. If you qualify for lawsuit funding, you might get the money you need without waiting months or even years for an insurance pay-out.

But, you must meet some qualifications for pre settlement funds. Here are some of them:

  • Strong cause. You should have a viable case: If your case is not strong enough, it will be impossible for the law firm to get the money back from the defendant. For example, if your case is based on an injury that isn’t life-threatening or related to a dispute over money, it might not be considered viable.
  • No prior pending lawsuits. There should be no pending lawsuits against you.  As soon as you apply for a settlement advance, the lenders check your credit history and criminal record. They will likely reject you if there are any outstanding or pending lawsuits against you. If you have some unpaid bills, your chances of getting approved will also decrease.
  • Good credit score. You should have no history of bankruptcy or tax liens against you. The best lawsuit loan companies will check your credit score and do a background check on you. Your application is approved if there are no negative marks on your credit report.
  • Detailed documentation. You should have adequate documentation of your legal expenses and costs. The pre settlement lawsuit loan company will verify that you have paid all the bills related to the litigation. You may be required to submit copies of receipts or contracts between you and your attorney.
  • Background checks. You should not be involved in any other type of litigation when applying for lawsuit funding. The lawsuit funding company wants to make sure that you are not involved in any other cases as it would affect their decision on whether to fund your case or not.

Choosing a Pre settlement Funding Company

If you are an injured party looking for a settlement cash advance now, you should consider the below factors while selecting lawsuit funding companies.

1. The Reputation of the Company

This is essential because it determines how well a company will treat you when they fund your case. They will treat you with respect and dignity if they have a good reputation. A company with a bad reputation may not be trustworthy enough to handle your case professionally.

2. Experience of the Company

The experience of a company denotes how long they have been in business. You should only select those companies that have a proven track record of helping people win their cases successfully.

3. Cost of Funding

You don’t want to spend too much money on financing your lawsuit since it might not even be successful or take too long to settle out of court. Therefore, when choosing a settlement loan advance company, ensure that they offer affordable rates so you don’t spend too much money on financing your case.

4. Repayment Term

The repayment term dictates how long you have to repay the lawsuit funding company after your case settles or if it goes to trial. You can choose from 3 months, 6 months or 12 months. If you win an amount less than expected, you can also repay the loan earlier than expected. This helps you save money on interest payments because of early repayment.

5. Loan Amount

The amount of money you get depends on three factors: the type of lawsuit, its duration, and any additional costs. If your case is likely to settle quickly with little effort, you may qualify for a smaller loan amount than someone who has a lengthy proceeding ahead of them with high attorney fees.

6. Duration of Lawsuit

This is the most important factor since it determines the expected return on investment of your lawsuit funding. If you have a good case and expect a settlement or award, you can apply for high-interest lawsuit loans. However, if your case will take too long to resolve and you don’t have any other income, then it is better to opt for lower interest rates.

7. Type of Lawsuit

The type of lawsuit also matters when selecting a lawsuit funding option. If your case involves personal injury or wrongful death, you can quickly get legal financing due to high demand and competition among lenders. In contrast, it may be challenging to find reliable lenders if your case involves intellectual property rights or breach of contract. Such lawsuits are less common than personal injury claims or wrongful death cases.

8. Compare Them With Competitors

Make sure you compare the pre-settlement funding companies you are interested in with similar companies. You should compare their rates, as well as their terms and conditions. You can do this by reading online reviews and asking around for recommendations.

9. Ensure the Company Is Licensed

You will want to make sure that the company is licensed when it comes to providing funding for lawsuits in your state or jurisdiction. This means they can legally provide such services and offer them to people in your area.

To Conclude

Before you’re able to obtain lawsuit funding, there are several qualifications and requirements that you will need to meet. Lawsuit funding is an attractive option for those going through a difficult time in their lives and who need pre settlement funds to help through the litigation process.

However, you must work with a reputable firm when making your selection. Always do your homework and check out the various companies available before settling on one in particular.

Recent Developments in Class Action: A Gender Discrimination Case

A class action, also known as a class-action lawsuit, class suit, or representative action, is a type of lawsuit where one of the parties is a group of people who are represented collectively by a member or members of that group.

1. Discrimination in University Entrance Examinations

In 2018, one of the biggest stories in the Japanese media was the news about how a medical university in Japan had been unfairly discriminating against women and examinees who took their second or further repeat attempts at the entrance examinations. This news came to light as a by-product of an investigation on a different scandal at the university. Subsequent investigations at other universities revealed that a sizable number of medical universities had continued the same kind of discrimination in the admission process for years.

Since the results of university entrance examinations have significant impact on examinees’ life chances, including their future careers, fairness in the admission process is crucially necessary. This scandal attracted huge attention in Japan because, around that time, Japan’s serious gender gap had finally become widely recognised and international buzzwords such as SDGs and ESGs had become a topic of discussion among the public.

From a legal perspective, this case also has implications for class action lawsuits in Japan. This article analyses the types of lawsuits that have been used in this discrimination case and discusses the initiatives which companies should implement to meet the higher standards expected of companies in an era of SDGs and ESGs.

2. Remedies through Individual Civil Lawsuits

The immediate reaction of the examinees who had felt betrayed by the unfair admission process was to file individual civil lawsuits against these universities. The examinees claimed damages and compensation. In May 2022, the Tokyo District Court ruled in favour of some of the examinees’ claims that the university treated these examinees unfairly based solely on their gender in their entrance examinations.

According to media reports, several universities and their examinees have already reached settlements in other lawsuits. In Japanese litigation practice, lawsuits often end by a settlement after both parties reach an agreement before the courts. In such cases, the details of the settlements are not disclosed. Therefore, the details of the settlements are not yet known for these cases, but according to media reports, these universities agreed to pay damages to the examinees who were plaintiffs in the cases.

3. Remedies through Class Action

While it is common practice to file individual civil lawsuits, as described above, when an individual wants to seek judicial remedies, the interesting point about this case is that the victims are also using a remedy based on the consumer court procedure, known as the Japanese version of class action. This procedure is based on the Act on Special Measures Concerning Civil Court Proceedings for the Collective Redress for Property Damage Incurred by Consumers (the “Act”), which came into force in 2016.

The Act adopts a two-phase court procedure. In the first phase, a Specified Qualified Consumer Organisation (the “Organisation”), which is authorised by the Prime Minister of Japan, is required to file a lawsuit on behalf of consumers, demanding a judgement to declare that a company or any other type of business entity which provides goods or services to consumers, is liable for certain damages to each consumer represented by the Organisation. In the process, the Organisation obtains a judgment confirming the illegality of the business entity, which is the defendant in the case. The second phase is called the Simplified Finalisation Procedure. In the second phase, the Organisation authorised by individual consumers shall file a proof of claim by individual consumers, and after the court confirms the claim, the business entity shall be obliged to pay the consumers the amount of the certified claim.

The consumer court procedures have been rarely used, because only limited registered organisations are qualified to be plaintiffs in the court procedure, and because the two-phase court procedure is complicated. However, in the current discrimination case, a specific qualified consumer protection organisation successfully used the court process. The organisation filed a lawsuit against one of the universities in 2019 with the Tokyo District Court seeking the declaration of the obligation to refund examination fees and other expenses, and in September 2021, the court ruled in favour of the consumer protection organisation. The court found that the university is obliged to refund examination fees to the examinees in the first phase. The consumer protection organisation was able to successfully use this process because the damages caused to each examinee were easily generalised in the form of examination fees, and other expenses associated with the entrance examinations. The consumer protection organisation, which successfully obtained the declaration judgment, announced that they had filed a proof of claim in the Simplified Finalisation Procedure, the second phase, in April 2022. If the damages recovered through the consumer court proceedings in this discrimination case are significant enough, the Japanese class action may become an effective alternative for consumer protection cases in the future.

4. Meeting the Expectations for Creating Diversity-Conscious Organisations

In this discrimination case, the concept of diversity has once again become a point of contention. However, it is not an isolated example. All kinds of organisations are now required to meet the expectations to respect or improve diversity, not only in the relationship with customers but also in various internal processes.

For example, the Corporate Governance Code of Japan, revised in 2021, requires improving the level of diversity at both the management and employee levels. Diversity in management positions is considered an urgent goal to accomplish.

The human rights issue has gained attention not only within companies or other types of organisations, but also in the supply chain and other business activities. For instance, new regulations on human rights due diligence have been introduced in the EU and its member states. In Japan, the Ministry of Economy, Trade, and Industry’s “Study Group on Guidelines for Respecting Human Rights in Supply Chains” released their draft guidelines in April 2022. The study group is expected to publish the guidelines this year. From now on, companies will need to pay more attention to human rights issues in their businesses.

With these initiatives, companies are now expected to create an organisational structure that improves diversity in various aspects of their operations, including corporate governance, human resources, and supply chain management. Adapting to these requirements will significantly change the culture of Japanese corporations in the long run.


Yoshie Midorikawa (Partner, Miura & Partners)

Yoshie Midorikawa has extensive experience in complex disputes and arbitration under the rules of the ICC, SIAC, UNCITRAL, LCIA, and ICSID. Having worked with leading law firms in Japan and Singapore, she has handled parallel proceedings across multiple jurisdictions as well as domestic disputes before Japanese courts.

She has also handled investigations on corporate fraud and compliance issues.

Her recent interview on investigation practice includes Navigating the Fraud Landscape of Japan in Lawyer Monthly. She is listed in “Best Lawyers in Japan 2023 (Litigation)” and “Best Lawyers in Japan 2023 (Corporate Governance and Compliance)” by Best Lawyers. She is also a member of WWCDA (Women’s White Collar Defence Association).

The Main Dangers Of Not Keeping Your Commercial Space Clean

Keeping your commercial space clean is very important. Dirty floors, walls, and windows can attract pests and cause illness in employees. This blog post will discuss the main dangers of not keeping your commercial space clean, such as attracting pests and causing illness in employees.

Health Hazards

Dirty spaces can lead to a variety of health hazards. Dust, dirt, and other debris can cause respiratory problems, while pests like mice or rats can spread diseases. Additionally, dirty surfaces can be a breeding ground for bacteria and viruses, which can cause serious illnesses. It is therefore essential to keep your commercial space clean to protect the health of your employees and customers. As the team behind noted, if you are not able to clean your space yourself, it is important to hire professional help from cleaning specialists. A good commercial cleaning company will have the experience and equipment necessary to clean your space quickly and efficiently. They will also be aware of the health hazards associated with dirty spaces and will take steps to protect your employees and customers.

Attracts Pests

A dirty space is an ideal place for pests to live and breed. They can easily find food and shelter in the mess, which can lead to an infestation. Keep your space clean and free of clutter so that pests have nowhere to hide. Regularly sweep and mop floors, vacuum carpets, and wipe down surfaces. Dispose of garbage properly and keep food sealed in containers. If you do see a pest invasion, address it quickly before it gets out of control.

If you do find that you have a pest infestation, contact a professional pest control company right away. They will be able to identify the pests and put together a plan to get rid of them safely and effectively.

Reduces Productivity

A dirty and cluttered workspace can lead to a reduction in productivity. This is because it takes time and energy to search for what you need, making it difficult to focus on the task at hand. Studies have shown that an untidy desk can lead to a loss of up to two hours of work per day.

This is why it’s important to keep your commercial space clean and organised so that you can stay productive and focused. By decluttering your space and keeping everything tidy, you’ll be able to work more efficiently and get more done in less time. So if you’re looking for a way to boost your productivity, start by cleaning up your workspace.

Makes Space Look Unprofessional

Keeping your commercial space clean is one of the best things you can do for your business. Not only does it improve the morale and productivity of everyone who spends time in that area, but keeping a tidy office also helps increase sales by making an impression on customers that lasts throughout their entire visitor interaction with your company. More often than not, busy offices are more focused on completing work tasks rather than cleaning up afterward, which means they aren’t necessarily thinking about how dirty workspace can make it look unprofessional and therefore affect your business.

Cleanliness is contagious. This phrase applies when it comes to a business owner’s mindset about their workspace because if they aren’t willing to keep up with daily cleaning tasks then that sends off an impressionable message that could impact future sales opportunities too. If customers see how poorly maintained your office is on one visit, chances are they won’t come back anytime soon, which means lost revenue down the line.

Decreases Employees’ Morale

Employees are more likely to be unhappy, uncomfortable, and distracted in a dirty workspace. They’re less motivated to work hard when they feel like their space is unappealing. They need to know that you care about the health and appearance of your commercial building as much as they do. A clean and organised space will help boost their morale and make them more productive.

If you’re not keeping up with regular cleaning, it’s only a matter of time before your employees start to feel the effects. It’s important to be proactive and keep your building looking its best.

Can Lead to Lawsuits

If you don’t keep your commercial space clean, you can face lawsuits from both customers and employees. In a worst-case scenario, an illness or injury caused by a lack of hygiene in your business could lead to a massive lawsuit that could bankrupt your company. To avoid these legal issues, make sure to maintain high standards of cleanliness in all areas of your commercial space.

It’s also important to remember that violating health codes can lead to serious penalties. For example, if you’re caught serving food in an unclean environment, you could be fined thousands of dollars or even shut down completely. So make sure to stay up-to-date on local health regulations and always follow them. By doing so, you’ll help ensure that your business stays out of the headlines and remains profitable.

This article discussed the main dangers of keeping your commercial space in a bad state. Keep it clean and maintain its quality, or you might find yourself in some serious financial trouble.