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Litigation Financing in Spain

Litigation financing is becoming a reality these strange and tough days we are going through in Spain and several renowned funds have already established themselves within this growing business initiative.

The business model is simple: the funder agrees to pay the legal expenses incurred by a company (usually as a plaintiff) to pursue a claim. If the company finally loses the litigation, it bears no costs for the financier/funder and any adverse costs out of the final judgment is usually covered by an insurance policy that is normally part of the financing package. On the other hand, if the company wins, it remunerates the financier/funder with a percentage of the "profits".

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