It’s survey day! What percentage of attorneys have had experience with third-party litigation funding? More than 60%, according to the 2022 Litigation Finance Survey Report.
Every year since 2017, litigation finance firm Lake Whillans and Above the Law have asked in-house counsel and law firm attorneys to share their perspectives on third-party litigation funding. Their survey has tracked the growth of this field and the 2022 Litigation Finance Survey Report (available here) shows that an increasing number of law firms and their clients view litigation funding as a valuable resource. Here are some highlights from this year’s survey:
- A majority (62%) of the lawyers surveyed have firsthand experience working with a litigation finance firm. Respondents in the middle tiers of firm size have a much larger percentage of experience – 26-50 attorneys (88%), 51-100 attorneys (92%) and 101-250 attorneys (90%)!
- More than 80% of those who haven’t worked with a litigation funder would consider it.
- Most (88%) of the respondents with prior experience would recommend litigation finance to others, and nearly all (94%) said they would turn to litigation funding again themselves.
- Nearly 70% of respondents said that litigation finance has become more relevant to their practice in the last year.
- The primary motivations for seeking third-party financing were to pay for operating expenses and to hedge the risks of litigation.
- Law firms are the most often cited driving force behind the decision to seek litigation funding.
Apparently, the 62% with firsthand knowledge of litigation finance isn’t even unprecedented, much less a record. The report states: “Three years ago, we witnessed a watershed in the field’s development, when the percentage of attorneys who had firsthand experience with litigation finance jumped nearly 30 points, from 41% to 70%. Since then, the proportion of respondents reporting direct experience with litigation funding has remained above 60%.”
Exactly two years ago (what are the odds?), I wrote about the pandemic leading to a litigation finance boom, but apparently, the boom was already underway! Who knew? 😮
So, what do you think? Are you surprised by any of the findings in the 2022 Litigation Finance Survey Report? Please share any comments you might have or if you’d like to know more about a particular topic.
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