third-party funding

Third-party funding occurs when an unrelated organization or individual financially supports a legal case, covering costs like legal fees and expenses. In return, they may receive a portion of any compensation or settlement if the case succeeds. This arrangement allows parties, especially those with limited resources, to pursue or defend legal claims without bearing the full financial burden upfront. It helps increase access to justice and can motivate efficient case management, as the funder’s return depends on the case’s outcome rather than ongoing expenses.