Litigation capital marketplace provides financing for lawyers' case expenses through an online platform that has already facilitated over $40 million in loans. Third party litigation financing is becoming more common and allows plaintiffs to pursue cases they otherwise could not by providing cash advances to cover litigation costs in exchange for a share of any settlement or judgment. While controversial, litigation financing levels the playing field for plaintiffs against well-funded defendants and may increase access to the legal system.

1. LITIGATION CAPITAL MARKETPLACE
Litigation Capital 2014 eNews
2013 Alternative Litigation Capital
Litigation Capital Marketplace

2. 2014 LITIGATION CAPITAL MARKETPLACE NEWS
What Do Lawyers Think About Litigation Finance.
Jan 2014 -- While more common in the UK and Australia, the majority of financial executives think law
firms should explain third party funding at the outset of a case.
http://blogs.wsj.com/law/2014/01/15/what-do-lawyers-and-in-house-counsel-really-think-about-
litigation-finance/
LitCap Announces Version 3.2 of its Attorney Financing Marketplace.
Houston, TX (PRWEB) February 06, 2014 - LitCap, an online marketplace that connects
attorneys with qualified investors/lenders for case cost financing, has launched Version
3.2 of its platform. While a relatively new company (launched on September 1, 2013),
LitCap has facilitated over $40 million in case cost financing for attorneys. Loans funded
2014 Litigation Forecast.
January 2014 -- Crowell & Moring has published Litigation Forecast 2014: What Corporate Counsel
Need to Know in the Coming Year. The report explores critical litigation issues and forward-looking
perspectives on trends affecting a wide range of companies and industries, and identifies cases to
watch in 15 areas of law, including: antitrust, class actions, environmental, government contracts,
patents, tax, trade secrets, white collar, insurance/reinsurance, energy, and financial services.
http://www.crowell.com/NewsEvents/Litigation-Forecast/Litigation-Forecast-2014#.UuKTFRApDX4
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through the LitCap marketplace are used for case related expenses only (not legal fees
or other expenses) and cover virtually all aspects of civil litigation, including business
litigation, employment disputes, wrongful death claims, and even large case related
expenses such as intellectual property or class action litigation. About the LitCap
Marketplace
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Legal Capital and Legal Funding Tips.
January 2014 - 5 Legal Funding Tips. What are legal loans?
A legal loan is more like a cash advance than a traditional loan.
- See more at: http://lawstreetcapital.com/lawsuit-funding-companies/legal-funding-
tips/#sthash sTyeFRDT dpuf
Lawsuit Funding Lures.
Feb 2014 – Forbes - Contingent fee lawyers often need cash. So do their clients.
http://www.forbes.com/fdc/welcome_mjx.shtml
Morgan Stanley Executive to Join Litigation Finance Firm.
tips/#sthash.sTyeFRDT.dpuf
ttp://lawstreetcapital.com/lawsuit-funding-companies/legal-funding-tips/
AAJ's All About Alternative Litigation Financing.
January 2013, Volume 49, No. 1. All about alternative litigation financing. J. Burton LeBlanc and S.
Ann Saucer. Alternative litigation financing provides an avenue for consumers and commercial
plaintiffs to undertake cases that would otherwise be too costly Properly regulated these
o ga Sta ey ecut e to Jo t gat o a ce
March 31, 2014 by William Alden. A senior executive at Morgan Stanley is preparing to
join the field of litigation finance, a young industry in which investment firms stake millions
on the outcome of lawsuits.
Burford 2013 Annual Report.
Mar 28, 2014 - Burford Capital Annual Report 2013. www.burfordcapital.com/wp-plaintiffs to undertake cases that would otherwise be too costly. Properly regulated, these
financing agreements level the field against well-funded defendants. Alternative litigation
financing (ALF), also known as third-party litigation financing, is the practice of making cash
advances, most typically to a party in a lawsuit, to be repaid from the proceeds from the litigation.
Broadly stated, ALFs are funding mechanisms that differ from other funding, such as paying litigation
expenses from the -client’s or counsel’s lines of credit or operating budgets. The hallmark of ALF
providers, as distinguished from settlement factoring companies, is that the financing contracts are
executed before there is a settlement or judgment corpus making ALF a way to spread the risk of
, p p p p
content/.../Burford_Capital_AR13_web.pdf
executed before there is a settlement or judgment corpus, making ALF a way to spread the risk of
uncertain litigation outcomes. The issue is not without controversy, and it has received increased
attention from lawmakers, legal commentators, and ethics committees.
http://www.justice.org/cps/rde/justice/hs.xsl/19869.htm
April 15, 2014

3. 2013 ALTERNATIVE LENDING LITIGATION FINANCE NEWS
According to the Federal Judicial Center pursuing a civil action in
federal court now costs plaintiffs with suits alleging product defects or
malpractice out-of-pocket expenditures in the low six figures.
The United States judicial system is in the
midst of great and fundamental change with
regard to the funding of litigation . Historically,
parties financed litigation out of their own literal or
Over the past thirty years, lawyers litigation capital lending has
evolved from self lending to peer interfirm to third parties.
By decoupling a firm's access to capital from its reservoir of expertise;
with third party ligation finance change is here Potential outcomes
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figurative pockets or, perhaps, with the assistance
of some sort of contingent fee
representation.[1] The demand for this alternative
litigation finance (“ALF”)[4] clearly aexists,[5] and
th l f f di h d l d
with third party ligation finance change is here. Potential outcomes
from alternative lending on a case by case basis:
“I never have to worry about referring large cases.”
“I have the financial power to stay in charge of all my cases and
receive the entire fee.”
the supply of funding has developed….
Litigation capital funding alters the relative power
of players in the justice system; it provides access
to the playing field and also ensures that the
‘Lawyer lending might help resurrect the "vanishing trial“”’
Injecting more capital resources into litigation will facilitate case
preparation, higher caliber experts, construct more elaborate
demonstratives and level the playing field between plaintiffs and better
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teams show up at the field with the same
equipment.[10]
S Alt ti Liti ti Fi bli h d J 2013 b Thdemonstratives, and level the playing field between plaintiffs and better
financed foes. If lawyer lending encourages attorneys to accept more
complex cases, the legal access problem that plagues certain
segments might become ameliorated. Small changes to resources can
spark profound changes in civil litigation not just how cases are
Source: Alternative Litigation Finance published January 2013 by The
Wake Forest Law Review by Grace M. Giessel.
litigated but also quality and quantity.
Source: Professor at Stanford Law School Nora Freeman Engstrom. Re-Re-Financing Civil Litigation
How Lawyer Lending Will Remake the American Litigation Landscape, Again.
http://www.uclalawreview.org/pdf/discourse/61-8.pdf

4. 2013 ALTERNATIVE LENDING LITIGATION FINANCE NEWS
LAW OFFICE MANAGEMENT
January 2013, Volume 49, No. 1
All about alternative litigation financingAll about alternative litigation financing
J. Burton LeBlanc and S. Ann Saucer
Alternative litigation financing provides an avenue for consumers and commercial plaintiffs to undertake
cases that would otherwise be too costly. Properly regulated, these financing agreements level the field
against well‐funded defendants.
Alternative litigation financing (ALF) also known as third party litigation financing is the practice of makingAlternative litigation financing (ALF), also known as third‐party litigation financing, is the practice of making
cash advances, most typically to a party in a lawsuit, to be repaid from the proceeds from the litigation.
Broadly stated, ALFs are funding mechanisms that differ from other funding, such as paying litigation
expenses from the ‐client’s or counsel’s lines of credit or operating budgets. The hallmark of ALF providers, as
distinguished from settlement factoring companies, is that the financing contracts are executed before there
is a settlement or judgment corpus, making ALF a way to spread the risk of uncertain litigation outcomes. The
i i i h d i h i d i d i f l k l lissue is not without controversy, and it has received increased attention from lawmakers, legal
commentators, and ethics committees.
Generally speaking, there are two categories of ALF: consumer and commercial. The consumer ALF industry
extends cash advances to plaintiffs to meet their financial needs while their actions are pending. Most occur
in automobile cases, with an average advance of approximately $1,700. Commercial ALF involves far greater
sums, potentially in the millions, for lawyers’ fees and litigation expenses. Commercial ALF advances can be , p y , y g p
made in exchange for a percentage of the recovery. In some instances, this financing is done in stages.
Source:
http://www justice org/cps/rde/justice/hs xsl/19869 htmhttp://www.justice.org/cps/rde/justice/hs.xsl/19869.htm

5. ABOUT LITIGATION CAPITAL
• Litigation finance, as the business is known, often involves bankrolling plaintiffs in
exchange for a slice of the lawsuit’s potential winnings. Some firms, can invest in
defendants as well, by advancing legal fees and then collecting a return if the case is
successful If the case fails the investors walk away with nothingsuccessful. If the case fails, the investors walk away with nothing.
• Though the business of litigation finance in the United States is relatively new, it has
attracted a number of prominent lawyers in recent years, lured by the prospect of double-
digit returns.
• When it comes to legal spats, companies often loathe having to spend millions of dollars on
legal fees while waiting months for a case to drag through courts But to Wall Streetlegal fees while waiting months for a case to drag through courts. But to Wall Street,
lengthy litigation is a growing investment opportunity.
• Once considered taboo in the legal profession, the practice of litigation finance is enticing
more corporate lawyers to become investors, bankrolling lawsuits in exchange for a piece
of the potential winnings. Firms have to be selective about the cases they pick, combining
a lawyer’s legal sense with an investor’s knowledge of risk Deals are customized for eacha lawyer s legal sense with an investor s knowledge of risk. Deals are customized for each
case, after a due diligence process that often includes analysis of a case’s facts, witnesses,
opposing counsel and potential recoveries. Firms typically put several million dollars on the
line. The American Bar Association recently issued a report that outlined the risks of
litigation financing but did not condemn the practice.
Source: http://dealbook.nytimes.com/p y
April 15, 2014

6. ABOUT LITIGATION CAPITAL
• Legal financing (also known as litigation financing, professional funding,settlement funding, third
party funding, and, in England and Wales, litigation funding) is the mechanism or process through
which litigants (and even law firms) can finance their litigation or other legal costs through a third party
funding company. These third party funding companies provide cash advance to litigants in exchange forg p y p y g p p g g
a percentage share of the judgment or settlement. However, if the case proceeds to trial and the litigant
loses, the third party funding company receives nothing and loses the money they have invested in the
case.[1] In other words, if the litigant loses, he does not have to repay the money. Accordingly, to qualify
for funding with a legal financing company, a litigant's case must have sufficient merits.
• Litigation funding is available in most common law jurisdictions in the United States. The process is most
commonly used in personal injury cases,[2] but may also apply to commercial disputes, civily p j y , y pp y p ,
rights cases, workers' compensation, and structured settlement.[citation needed] The amount of money
that plaintiffs receive through legal financing varies widely, but often is around 10 to 15 percent of the
expected value of judgment or settlement of their personal injury lawsuit. Some companies allow
individuals to request more or less money (as needed) and have varying payout rates depending on the
characteristics of the case at hand.
• Litigation finance, So-called litigation finance involves investors either helping to pay the costs of aLitigation finance, So called litigation finance involves investors either helping to pay the costs of a
lawsuit or purchasing stakes in settlements or judgments at a discount in hopes of profiting from litigants
eager to get their money earlier.
• There are a number of firms that specialize in the business, sometimes with portfolios in the hundreds of
millions of dollars, and some hedge funds like Elliott also dabble in lawsuit funding as part of a broader
investment strategy.
• Advocates say such investments allow clients to pursue lawsuits against opponents with deeper pockets• Advocates say such investments allow clients to pursue lawsuits against opponents with deeper pockets,
while some business groups say the practice gives outside undue influence over cases and drives up the
cost of litigation.
Source: http://blogs.wsj.com/moneybeat/2014/03/24/spider-man-disappoints-hedge-fund-that-bankrolled-suit-against-disney/
April 15, 2014

7. UNLOCK STRANDED CASES COSTS
The LitCap Marketplace is the source for preeminent attorneys to obtain unlimited unsecured financing for case-related expenses.
Take control of your case financing today and contact LitCap
Membership is free to qualified lawyers.
Contact LitCapContact LitCap
Linda[at]litcap.net | Tel: (713) 946-6464 | 1314 Texas Ave., Suite 1110 Houston, TX 77002