Stonward, a new Spanish litigation fund enters the market

Third party litigation funding is a legal tool that allows an external party to a judicial or arbitration procedure to pay its fees and expenses in exchange for a previously agreed portion of the recovery.

According to the firm, they arrive in a moment where an avalanche of global commercial disputes caused by Covid19 are expected due to breach of contract by States and corporations, or increased financial and organizational pressures, for example.

“It is not just an option for insolvent claimants – explains Carolina Bayo, senior director and head of legal assets -; many times, a claimant is solvent and chooses not to empty its coffers in procedures that can last years, and reinvest those funds in the business and face other expenses that will generate profit in the nearer future. It also allows law firms to work on cases without having to put forth their own resources”.