No one wants to be involved in a dispute, but sometimes companies have to engage in disputes in order to defend their commercial and financial interests. About 25,000 commercial disputes are initiated in the public courts of Sweden, along with several hundred arbitrations in addition.
Surveys show that more than 95% of those involved in a dispute want to reach a settlement. This is natural because companies have a core business to focus on. In order to reach a settlement at an acceptable level, however, you are likely to first having to make a thorough analysis of the merits of the case first and then take some sort of step to show that you are serious about pursuing the claim. In order for you to be able to do that, you need financial resources and a reputable counsel.
Our business model is not built for achieving the highest possible outcome no matter the time and cost. Instead, we believe that most commonly, the best solution for both us and our customers is to reach a good settlement within a reasonable time frame.
Litigation funding is a type of financing that has emerged over the past fifteen years which basically can be regarded as specialized project financing where the funder offers capital for a particular purpose (a dispute). In consideration, the funder receives a share of the proceeds in the dispute if the case is succesful. The funder bears the risk for the case being unsuccessful. The development of litigation funding has been lead by the Common law jurisdictions. However, Europe is expected to be one of the strongest growing markets going forward.
Litigation funding is thus far relatively unknown in the Nordic region, but has become increasingly common in recent years, as both companies and law professionals become aware of its potential. In addition to Litigium Capital, there are a handful of players established in the Nordics, but financing of local companies is also regularly taken place by international funders.