German civil procedural law is based on the principle that the loser of a legal dispute has to bear the occurring costs. These costs include both court costs and extrajudicial costs, in particular the lawyer’s fees of the other party.
However, in order to be able to start a legal dispute at all, the plaintiff is obliged to pay the court costs in advance, and the costs of his own lawyer must also be paid in advance until they are recovered after the dispute has been won. This obligation to pay in advance often prevents claimants from having their own legal position reviewed by a court. This is either because the costs cannot be raised or the claimant is not 100% sure of his case.
Since attorneys in Germany are prohibited by professional law from financing their client’s legal dispute, this is where litigation financiers come into play. These are independent service providers who assume the cost risk of a lawsuit for their clients in return for a share in the outcome of the lawsuit. Depending on the structure of the agreement with the litigation financier, the latter will assume all judicial and extrajudicial costs, even in the event of loss of the case. The cost risk for the customer is thus absorbed.
From our more than 10 years of experience in litigation, we have the best contacts to national and international litigation financiers, with whom we can put you in touch depending on the case. We take over the preparation of the case so that the litigation financier can make a decision on this basis. The more precise and favourable the preparation of the case is, the lower the quota of what the litigation financier claims from the outcome of the case is often. But even if you have already received a negative decision from a litigation financier, this does not mean the end of the process. On the one hand, we can help you as a client to ensure that the litigation financier reconsiders his decision on the basis of our subsequent preparation and perhaps takes over the financing after all. On the other hand, we can put you in touch with another litigation financier if the originally intended one cannot be convinced of the opposite.
However, litigation financiers can also benefit from our many years of litigation experience. We provide legal opinions on the prospects of success of the cases presented to you by potential customers in all areas of civil and commercial law, thus helping you to assess the risk and price your service. If desired, we can also advise you on how to communicate with your customer’s attorney and jointly represent the common interests of you and your customer.
Please do not hesitate to contact us without obligation.