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Risk-Filled Risk Aversion: The Troubling Nature Of Third Party Litigation Financing Arrangements In The Context Of Aggregate Claims, Houston A. Bragg

Lincoln Memorial University Law Review

The pursuit of justice, with infrequent exception, requires financial stability and sometimes even wealth. The cost of litigation has become so burdensome over the years that a system of third party litigation finance, also known as “litigation lending,” has developed in the background of the U.S. justice system. On its face, third party litigation financing shifts risk from risk-averse individual plaintiffs to well-insulated investors, promoting a more even-handed adversarial system. The practical success of litigation lending in the individual context has led to an outgrowth of rhetoric concerning, and even attempts at applying, litigation lending to aggregate claims. From court …