As the nation continues to reel from quarantining and the effect that quarantining has had on the economy, lawyers and litigants may be looking for ways to protect themselves and their assets. One topic that has been the subject of significant commentary in recent years—and even more so in the throes of this pandemic—has been litigation funding.  

Although litigation funding arrangements can take many different forms, in most instances, a third party (such as a litigation funding company) pays a litigant’s attorneys’ fees and other costs in exchange for an interest in the outcome of the lawsuit. Litigation funders assess the strengths of litigation as an investment. In this way, litigation funding can provide access to justice for litigants that otherwise could not afford it, or can help minimize the risks for litigants by sharing the costs and risks with a third party.