OREANDA-NEWS. Vannin Capital, the market leading dispute resolution funder, has today published the first report in its Funding In Focus series focused on providing insights, case studies and independent opinions on the high growth area of third party litigation funding ("TPLF") in key global markets and sectors. The inaugural report highlights include some unique insights and statistics regarding the legal industry's perception of the utilisation of TPLF:

 

·     73% of people surveyed believe that third party funding can promote access to justice without imposing financial burdens on defendants.

·     74% of people surveyed would alter their approach to a case if they had known the opposition had access to TPLF.

·     66% of private practice respondents to the survey highlighted client budgeting issues as having forced settlements on court actions for less than true value.

 

The report highlights the growing appetite for larger class action and the role that TPLF can play in enabling companies to access justice. For example, the percentage of companies with revenues of over \\$1 billion spending over \\$10 million annually on litigation has grown from 19% in 2011 to 43%. In this scenario, the report highlights that TPLF can be a method of financing a case by removing the cost of litigation from a company's balance sheet, ensuring that the cost of the claim has no impact on EBITDA and reduces, or in many cases, eliminates internal legal spend.

The report also includes two focus sections highlighting the success of TPLF in Australia and the commercial opportunities of funding in the electrical power sector:

 ·     The report explains how Australia has developed to become the world's leader in TPLF with an industry which has won government support, includes two ASX listed funders and has hosted a total value of \\$2.6billion worth of cases being funded.

·     Focusing on electrical power, the report describes the growing number of disputes in the sector, and highlights that 14% of investor claimants in 2014 at ICSID alone failed due to a lack of funds, cases that could have been successful with TPLF.