Law firms can use commercial litigation funding from Curiam to:
- Generate hourly revenue for the firm in cases where the firm is working on a full or partial contingency;
- Pay out-of-pocket litigation expenses; and
- Convert contingent interests in a portfolio of litigation claims into immediate capital to smooth out cash flows or fund growth.
Financing from Curiam is nonrecourse. If the relevant litigation is not successful, the law firm is not obligated to repay the funding.
The Advantages of Law Firm Litigation Finance
Here are a few reasons why a law firm may want to consider litigation finance:
Financing allows lawyers to compete for business that they otherwise would not be able to handle. Many law firms are not set up to offer contingent-fee arrangements.
When a law firm litigates for a client on a contingency basis or with a discounted billing agreement, the matter can quickly become very costly for the firm. And without a significant war chest, firms may struggle to pay ongoing operating expenses while waiting years for contingent fees. Law firm funding allows the law firm to offer contingent-fee arrangements to clients without sacrificing the cash flow required to pay operating expenses. Financing from Curiam helps to reallocate the risk of contingent-fee arrangements.
Financing is flexible enough to allow law firms to create “hybrid” arrangements where most of the cost of litigation is financed.
The law firm offers a small discount on its standard “rack” rates during the litigation in exchange for a modest success fee should the litigation prove successful. This arrangement gives the law firm the potential to recover more than 100% of its rack rates without having to take on significant risk for that potential upside.
Financing can allow law firms to invest in their future.
If a law firm is considering opening a new office, bringing in new talent, or improving its marketing efforts, it will need capital. With financing from Curiam, the law firm can grow, add clients, and stay competitive in the marketplace, while satisfying its ongoing operating expenses.
Financing can make cash flow more predictable.
Litigation funding can offer law firms a steady stream of revenue to pay expenses associated with either a case or the firm. It can also help if the firm has an unanticipated need for capital.
Litigation finance can be used as a law firm business development tool.
As more clients ask for alternative fee arrangements, an understanding of various litigation finance options can help a law firm craft a fee proposal that is more likely to appeal to the client and win the work.
Curiam’s Investment Guidelines
Curiam invests in individual cases and portfolios of cases that have a strong chance of success. Funding is available at any stage in the litigation process. But no matter the stage, the defendant must have the ability to satisfy a judgment, and potential damages must be significant enough to make the investment sensible to all parties involved. Curiam generally looks to invest $1 million or more. There is no upper limit on the size of an investment that Curiam will consider.
The process for investing is simple. A potential recipient of funding must sign a nondisclosure agreement with Curiam and then provide information necessary for Curiam to evaluate the investment. This information may include key court filings, an estimate of damages, and a proposed budget. Here is a typical investment timeline:
- Day 1 Execute non-disclosure agreement and request key information on potential litigation.
- Weeks 1 – 3 Evaluate the investment through legal and financial due diligence.
- Week 3 Prepare investment documents and agree on terms; deploy capital.
- Ongoing Monitor investment to assess progress and understand any adjustments to timeline or budget.
After Curiam invests, it monitors the litigation to assess progress and to understand any adjustments made to either the timeline or the budget. Curiam does not control litigation strategy or settlement; it merely provides the tools needed for success.
Why Choose Curiam?
Curiam’s team has decades of experience working on some of the largest and most complex litigations in United States history. Curiam also has a streamlined investment process that allows it to make decisions more quickly than many litigation funders. Finally, Curiam has a reliable and transparent source of capital.