Texans for Lawsuit Reform

Through political action, legal, academic and market research, and grassroots initiatives, TLR fights for common-sense reforms that keep Texas open for business.

  • About TLR
    • Our Mission
    • Our Team
    • Timeline of Reforms
  • Videos
  • Issues
  • Resource Center
    • Special Reports
    • In the News
    • Press Releases
    • The Advocate
    • TLR Blog: For the Record
    • Invite a TLR Speaker
  • Get Involved
  • Contact Us
  • Donate
  • Stay Informed
For the Record

Third-Party Litigation Financing 101

By: Lucy Nashed, TLR Communications Director

For those of us who only play lawyers on TV, the legal world and its jargon can be perplexing.

Being deposed in the legal world doesn’t (usually) involve any sort of Game of Thrones-like coup. You might want to keep your Latin dictionary handy if you’re doing any light legal reading, and what’s with all this talk about barratry, anyway?

Fortunately, we at TLR are here to help shed some light on the lesser known areas of the legal system that still deserve our close attention.

One such area is third-party litigation finance. A quick Google search will pull hundreds of articles touting its merits and decrying its pitfalls. But what exactly is it?

According the U.S. Chamber of Commerce’s Institute for Legal Reform (ILR), third-party litigation financing is “the practice of providing money to a party to pursue a potential or filed lawsuit in return for a share of any damages award or settlement.” The money can be used to cover legal fees and court costs, but it can also be used for living expenses as a lawsuit is ongoing.

ILR (dis)credits Australia as the birthplace of third-party litigation financing, where it continues to flourish and fuel class action litigation, even as it spreads around the world. Stateside, you may have heard of it in relation to the recent concussion lawsuits filed by former football players against the NFL.

Proponents of third-party litigation financing contend that it provides litigants with the money they need to pursue a claim in court. You’re only on the hook to pay it back if there’s a financial award at the end of the lawsuit (which isn’t guaranteed), so the funders are really the ones making a risky investment. Opponents, like ILR, point out the issues that can arise when a third party, whose only interest in a lawsuit is the financial outcome, is added to the equation. Is the resolution of that dispute really in the best interest of the litigant, or are decisions being made in order to maximize the return on the funder’s investment?

While there are certainly a number of issues left to sort out in this area, many of the conversations about this topic overlook the root of the problem.

Why is it that so many people can’t afford to use the legal system without mortgaging their future settlements in order to do so?

The answer is that, for many, the time and cost of taking a dispute to court is too high to pursue. Inefficiencies in the legal system, abusive tactics that extend the time and cost of litigation and even the cost of hiring an attorney can be too much for the average individual to handle.

We should not allow a person’s economic status to cut off their right to the courts. You also shouldn’t have to sign away part of your settlement in order to afford to pursue your dispute in the first place.

TLR has long worked to make the legal system more efficient and less expensive so all Texans can pursue their legitimate disputes in court. Those efforts will continue in the upcoming legislative session, so look for more on our proposals in the coming weeks.

Follow us on Facebook

Comments Box SVG iconsUsed for the like, share, comment, and reaction icons

Texans for Lawsuit Reform

29 minutes ago

Texans for Lawsuit Reform

Abusive commercial vehicle lawsuits are jeopardizing small businesses and the essential services Texas families rely on. As our state works to recover from the pandemic and from the recent devastating winter storm, we can’t let lawsuit abuse kill these critical jobs and endanger our supply chain. Read the Keep Texas Trucking Coalition’s statement regarding Senate Bills 17 and 207 and House Bills 19 and 1617 here: bit.ly/3b5m5ZN ... See MoreSee Less

Statement by the Keep Texas Trucking Coalition on SB 17, SB 207, HB 19 and HB 1617 – Keep Texas Trucking Coalition

bit.ly

AUSTIN—The Keep Texas Trucking Coalition (KTTC) today released the following statement regarding Senate Bills 17 and 207 and House Bills 19 and 1617, which address abusive lawsuits against owners an...
View on Facebook
·Share

Share on FacebookShare on TwitterShare on Linked InShare by Email

  • Likes: 1
  • Shares: 0
  • Comments: 0

Comment on Facebook

Texans for Lawsuit Reform

44 minutes ago

Texans for Lawsuit Reform

Abusive commercial vehicle lawsuits are built on presenting misleading evidence to the jury—whether inflated medical bills or prejudicial evidence about a commercial vehicle operator’s conduct. We cannot expect juries to arrive at a fair decision when given misleading, extraneous and purposely prejudicial information. Read TLR’s statement regarding our efforts to end abusive lawsuits against commercial vehicle owners here: bit.ly/3q1OzaZ ... See MoreSee Less

Link thumbnail

TLR Statement on SB 17, SB 207, HB 19 and HB 1617

bit.ly

Texans for Lawsuit Reform (TLR) today issued the following statement regarding its efforts to end abusive lawsuits against commercial vehicle owners.
View on Facebook
·Share

Share on FacebookShare on TwitterShare on Linked InShare by Email

  • Likes: 1
  • Shares: 0
  • Comments: 0

Comment on Facebook

Texans for Lawsuit Reform

3 days ago

Texans for Lawsuit Reform

Facing tough questions from state senators, embattled Texas Attorney General Ken Paxton defended his office’s failed effort to overturn presidential election results in key battleground states and its decision to spend millions of dollars on a lawsuit against Google. Read and share: bit.ly/3k1cO7S ... See MoreSee Less

Link thumbnail

Texas senators grill embattled Attorney General Ken Paxton over election lawsuit, Google case

bit.ly

Facing tough questions from state senators, embattled Texas Attorney General Ken Paxton defended his office’s failed effort to overturn presidential election results in key battleground states and i...
View on Facebook
·Share

Share on FacebookShare on TwitterShare on Linked InShare by Email

  • Likes: 1
  • Shares: 1
  • Comments: 0

Comment on Facebook


Follow us on Twitter

lawsuitreform avatarTLR@lawsuitreform·
44m 1366508585111482371

Read TLR's statement regarding our efforts to end abusive lawsuits against commercial vehicle owners here: https://bit.ly/3q1OzaZ #txlege #lawsuitreform #tortreform

Reply on Twitter 1366508585111482371Retweet on Twitter 1366508585111482371Like on Twitter 1366508585111482371Twitter 1366508585111482371
lawsuitreform avatarTLR@lawsuitreform·
26 Feb 1365406485400981509

Sign up for the TLR Weekly News Roundup to receive a daily digest of headlines & news stories about lawsuit reform from Texas & around the country!

Sign up for the TLR Weekly News Roundup!

Please use the form below to receive a daily digest of TLR Clips - headlines and news stories about lawsuit reform from Texas and around the country.

bit.ly

Reply on Twitter 1365406485400981509Retweet on Twitter 1365406485400981509Like on Twitter 13654064854009815091Twitter 1365406485400981509
lawsuitreform avatarTLR@lawsuitreform·
26 Feb 1365346286115958793

Embattled Texas AG Ken Paxton defended his office’s failed effort to overturn presidential election results in key battleground states & its decision to spend millions of dollars on a lawsuit against Google. Read & RT: #lawsuitreform #tortreform

Texas senators grill embattled Attorney General Ken Paxton over election lawsuit, Google case

Facing tough questions from state senators, embattled Texas Attorney General Ken Paxton defended his office’s failed effort to overturn presiden...

bit.ly

Reply on Twitter 1365346286115958793Retweet on Twitter 1365346286115958793Like on Twitter 13653462861159587931Twitter 1365346286115958793

Texans for Lawsuit Reform
1701 Brun Street
Houston, Texas 77019

Ph. 713-963-9363
  • About TLR
  • Our Mission
  • Our Team
  • Timeline of Reforms
  • Videos
  • Issues
  • Resource Center
  • For the Record
  • Special Reports
  • In the News
  • Press Releases
  • Invite a TLR Speaker
  • Get Involved
  • Invite a TLR Speaker
  • Donate
  • Stay Informed
  • Contact TLR

Copyright © 2021 · Texans for Lawsuit Reform. All rights reserved. | Privacy Policy

Copyright © 2021 · Texans for Lawsuit Reform.
All rights reserved.
Privacy Policy