Class action litigation funding has become an indispensable tool for plaintiffs in Australia, empowering individuals to pursue justice in cases where the odds might otherwise be stacked against them. By removing financial barriers and levelling the playing field, litigation funders enable plaintiffs to hold powerful corporations accountable. Here are the top 5 advantages of class action litigation funding for plaintiffs in Australia.
1. Access to Justice for All
Probably one of the biggest advantages of class action litigation funding is that the fund can sue despite the lack of sufficient capital to do so. In a class action, the plaintiffs always end up facing the big companies with so much financial muscle meaning the fight seems so terrible. Litigation funding thus takes away this impediment making it possible for people to come together to pursue a course of action that they feel would do them justice with no concern being made about the costs they are likely going to incur.
For instance, group litigation involving companies for deceitful corporate practices, for polluting the environment or for producing hazardous products is usually time-consuming hence costly in terms of research and legal processes. Once there is a litigation funder involved in bearing such costs, a plaintiff can go to court without worrying much about financial losses.
2. Borrowers’ Risk Exposure for Plaintiffs
A legal funding company assumes the economic cost of a particular case; therefore, plaintiffs cannot lose their money in a case that did not prevail. If the case is not successful, the costs such as lawyers fees and expenses are met by the funder.
This contingency funding approach explains why the lifer fund is important because the plaintiffs, who are always aiming for class-action lawsuits, will be able to secure their participation without putting their own money at risk. It is especially useful when related to civil lawsuits with an uncertain verdict, or when the trial may last for years.
3. Expertise and Resources
Litigation funders contribute more than cash to any case they are funding; they also contribute experience and support. In most cases, they undertake a very keen investigation of a case before funding it to ensure that the claims are valid and can be proven.
Potential benefits that come with the involvement of a litigation funder include a professional legal team, well experienced witnesses and well-analysed and developed strategies. This added expertise is especially important in multi-party, multi-state class actions where the consequences of a decision, as well as the legal issues raised are substantial.
4. Increased Negotiation Leverage
Litigation funding assists in the positioning of the investor and becomes a highly effective tool when negotiating settlements. Counsel also helps plaintiffs to have strong leverage when dealing with defendants since defendants usually do not take cases seriously when they are aware that the plaintiffs have substantial financial muscle and capable lawyers.
This increased leverage can translate into more substantial and more favourable awards for the plaintiffs since often Defendants would prefer a quick settlement to the controversy in question rather than be dragged through trial and appellate proceedings.
5. No Upfront Cost for Plaintiffs.
Funding of class action litigation helps eradicate a situation where the plaintiff is expected to contribute any amount towards the case. Working with the funder, they pay all costs such as filing charges, attorneys, and analytical professionals in a case and do not worry about costs.
This model is especially helpful for those populations that were harmed in a workplace context – the employees seeking remedy for legal violations, or environmental contamination – the affected communities. Being devoid of initial costs, more people can engage in class actions and assist in the punishment of the offenders.
Effective class action litigation funding is revolutionising access to justice in Australia by empowering plaintiffs to pursue legal claims without the financial burden. From mitigating risks to providing expert resources, the advantages of litigation funding are profound. By levelling the playing field, litigation funders ensure that even the most powerful entities can be held accountable, fostering a more equitable and transparent legal system.
Author Bio - The author wanted to make the readers aware of the benefits of class action litigation funding for plaintiffs in Australia with this blog.
